AT&T, DirecTV and KKR in Race to Buy Hulu: Report

Tuesday, 9 Jul 2013 | 7:07 AM ET
Hulu acting CEO Andy Forssell attends the Hulu NY Upfront on April 30, 2013.
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Hulu acting CEO Andy Forssell attends the Hulu NY Upfront on April 30, 2013.

Streaming video site Hulu has attracted three bids of over $1 billion from suitors including a partnership of AT&T and Chernin Group, the Wall Street Journal reported, citing people familiar with the matter.

The three highest bidders also include DirecTV and Guggenheim Digital Media which is jointly bidding with private equity firm KKR & Co., the Journal said.

The deal could be sealed in a week or two after the deadline for bids ends this week, it added.

(Read More: Why the Hulu Auction Will Only Get More Complicated)

Battle for Hulu Heats Up
Sources say the bids for the streaming website could come in between $800 to $1.2 billion, reports CNBC's Julia Boorstin.

Hulu, which was created in 2007, says on its website that it has more than 3 million subscribers paying $7.99 a month for its premium service, and that it generated revenues of about $700 million last year. It sells advertising for its free service.

AT&T could benefit from Hulu's mobile video and streaming video services, the financial daily said citing analysts.

(Read More: Yahoo Joins Growing List of Hulu Bidders)

The proposed price tag in excess of $1 billion increases the likelihood of a sale after the owners, News Corp. and Walt Disney, failed to sell the company in 2011.

Hulu was put on the auction block this year for the second time after the owners disagreed about how best to operate a Web service that streams TV programs and other videos, Reuters previously reported.

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  • Matt Hunter is the senior technology editor at CNBC.com.

  • Cadie Thompson is a tech reporter for the Enterprise Team for CNBC.com.

  • Working from Los Angeles, Boorstin is CNBC's media and entertainment reporter and editor of CNBC.com's Media Money section.

  • Jon Fortt is an on-air editor. He covers the companies, start-ups, and trends that are driving innovation in the industry.

  • Lipton is CNBC's technology correspondent, working from CNBC's Silicon Valley bureau.

  • Mark is CNBC's Silicon Valley/San Francisco Bureau Chief covering technology and digital media.