Walt Disney Co. and its partners have reversed their intention to sell off video streaming service Hulu.
The Burbank media conglomerate and New York co-owners NBCUniversal and 21st Century Fox instead are going to invest $750 million to grow the popular website offering television series
The service has been on the block for several months with El Segundo-based satellite broadcaster DirecTV and telecommunications giant AT&T Inc., of Dallas, expressing interest. According to a report on AllThingsD, some of the bidders could contribute to Hulu's recapitalization through distribution deals.
Disney Chief Executive Robert Iger Since said that since launching in 2008, Hulu has become among the most consumer friendly and technologically innovative entertainment platforms.
“As its evolution continues, Disney and its partners are committing resources to enable Hulu to achieve its maximum potential,” said Iger, in a prepared statement.
Hulu, based in Santa Monica, was founded in 2008 as an ad-supported video streaming service. It launched a premium version, Hulu Plus, in 2010 that now has more than 4 million subscribers.
The service offers first run programming provided by its owners, including current hit TV series, movies and original Web programs.
The online service was up for sale once before in June 2011 with the co-owners taking it off the market several months later after it didn't receive attractive bids.
“We believe the best path forward for Hulu is a meaningful recapitalization that will further accelerate its growth under the current ownership structure,” said 21st Century Fox President Chase Carey, in a statement.