According to a report of Bloomberg, Apple is thinking of acquiring the popular video streaming service, Hulu. In case you are not unfamiliar with Hulu, it is a video streaming service where one can watch on-demand TV Shows, movies, webisodes and other forms of media. Hulu is currently only available in the United States. If Apple indeed pushes through with the acquisition of Hulu, then they could have what it takes to rival other streaming service such as Netflix, especially considering how large the user base of Hulu is and just how devoted Apple fans can be.
According to Bloomberg, Apple's plan of making a bid for Hulu came from two inside sources who knows about the auction:
Apple Inc. (AAPL), with $76.2 billion in cash and securities on its books, is considering making a bid for the Hulu online video service, two people with knowledge of the auction said.
Apple, the world’s second-most-valuable company, is in early talks that may lead to an offer for Hulu, said the people, who weren’t authorized to speak publicly.
As we all know, Apple is currently directing their efforts in order to go completely wireless and allowing users to access content anytime, anywhere. In addition to that of course is the upcoming cloud storage service of the Cupertino company, iCloud. Apple has already made a firm foundation within the music purchasing industry with iTunes music store, so the company setting its eyes on video streaming isn't all that far-fetched.
Instead of coming up with their own video streaming backend, it makes more sense for Apple to purchase Hulu. First, it is an already established service with a very solid user base (about 1 million subscribers) and they could use the service to integrate it with iCloud. All that Apple needs to do is include more videos.
If Apple will indeed acquire Hulu, it will cost the company about $2 billion. Definitely a hefty sum for Apple who is not known making large acquisitions:
Hulu’s price tag could exceed $2 billion, according to data compiled by Bloomberg and SNL Kagan.
Apple typically doesn’t make large acquisitions, Sutherland said in an interview. Its biggest purchase of a company was the $400 million spent for NeXT Software Inc., the 1996 deal that returned Steve Jobs to the company, he said.
But considering Apple's success over the past years, the company is definitely in a proper financial stature to make the purchase. And as mentioned before, Apple could easily integrate Hulu streaming capabilities with the upcoming iCloud. The folks at iDownloadBlog have this to say about this matter, which certainly makes sense:
If Bloomberg’s report is a true sign of what’s to come, Apple is about to make a huge play towards video streaming. Currently, movies, rentals and TV shows bought in iTunes have to be downloaded first to an Apple TV or iPad before they can be played. Apple is obviously wanting to give its customers the ability to stream all media content from and to any Apple device. Video is a huge part of that equation.
As of now, these said talks with regards to the said acquisition is still on its early stages so it is likely that we won't be hearing any substantial information soon. [via Bloomberg]Contact Us for News Tips, Corrections and Feedback