Apple To Place Bid For Hulu?

Apple + Hulu

According to a new report, Apple is in early talks to make an offer to purchase Hulu; a popular online streaming service which provides TV shows and movies.

Apple Inc. is considering making a bid for the Hulu online video service, according to two people with knowledge of the auction.

Apple is in early talks that may lead to an acquisition offer for Los Angeles-based Hulu, said the people, who weren’t authorized to speak publicly.

Many other companies have considered making an offer to Hulu, with Yahoo having made a bid of $2 billion but the company wanted a five year  exclusive on streaming content. Rumors have also suggested that Google, AT&T, and many other companies have considered bidding while Microsoft has dropped out of bidding earlier this week.

If a deal is made between Apple and Hulu, Apple would receive a new subscription service and could be a potential threat to Netflix. Hulu would retain its exclusive content licenses from its current owners  Disney, FOX/News Corp., and Comcast/NBC. In addition, Apple would be able to offer even more choices for movies and TV shows via the iTunes store and possibly convert Hulu’s video content from Flash to HTML5.

Apple recently  reported  that it had $76.2 billion in cash reserves and securities on its chest. Such a large acquisition for Apple would be unusual since they normally acquire companies that aren’t “well-known” and this large in size. Their biggest  purchase to date of a company was $400 million spent for NeXT Software Inc back in 1996.

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