Yahoo! officially out of Hulu bid

Michelle Clancy RapidTVNews | 12-10-2011

Hulu's fortunes continue to be uncertain as Yahoo! said that it is officially out of the running to bid for the online TV site.
The Wall Street Journal reported that Yahoo! is out, confirming what the industry speculated to be true. However, Dish, Google and Amazon are still in the hunt. Dish and Google both have offers on the table, for $1.9 billion and a reported $4 billion, respectively, but they're both lower than the $2 billion for two years of exclusive content rights that Hulu was hoping for. The Google bid in particular is subject to mitigating terms, reportedly. The company's board is planning to decide on their course of action in the coming weeks.
Hulu's owners, which include News Corp., Walt Disney Co., Comcast/NBCUniversal and private equity firm Providence Equity Partners have a small but profitable company: Hulu is topping 1 million subscribers, each paying $7.99 a month.
In 2011, Hulu expects to make around $500 million. However, in an era of authenticated multiplatform offerings, it is unclear whether Hulu will soon become an albatross around their necks as they try to compete for advertising dollars with the likes of HBO GO. They could also potentially make more in carriage fees by charging distributors for multiscreen access to same-week content than they ever could via Hulu's subscription-based model.