Apple may consider bid for Hulu online

Apple, with $76.2 billion (Dh279.8 billion) in cash and securities on its books, is considering making a bid for the Hulu online video service, 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, it was said. Hulu would give Apple a new subscription service and represent a possible challenge to Netflix. Hulu\'s media company owners, Walt Disney, News Corp and Comcast Corp\'s NBC Universal, are offering suitors a five-year extension of programme rights, including two years of exclusive access, it was said earlier this week. \"Part of the ecosystem of Apple\'s future is to include more video,\" said Scott Sutherland, Wedbush Securities analyst in San Francisco who recommends buying the stock. \"It\'s something they are focused on.\" Meredith Kendall, a spokesperson for Los Angeles-based Hulu, declined to comment, as did Tom Neumayr, a spokesman for Cupertino, California-based Apple. 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, the 1996 deal that returned Steve Jobs to the company, he said. Apple agreed on June 30 to pay $2.6 billion as part of a group buying patents belonging to Nortel Networks Corp. Apple is also considering a bid for InterDigital, a company valued at $3.37 billion, for its patents, it was said. Instead of a subscription, Apple\'s iTunes media store offers TV shows and movies for rental or purchase from 99 cents to $4.99. Hulu, which inserts advertisements into programmes, offers limited free episodes and more expansive access with Hulu Plus for $7.99 a month. \"Hulu would add a new element to their arsenal from a streaming and subscription standpoint,\" said Brian Marshall, an analyst at Gleacher & Co. Apple rose 39 cents to $387.29 yesterday in Nasdaq Stock Market trading. The shares have climbed 20 per cent this year. Hulu Plus is available on Apple\'s iPhone, iPad and iPod Touch. It\'s also accessible through Microsoft\'s XBox video game console, Sony\'s PlayStation 3 and on phones using Google\'s Android operating system, including the HTC Thunderbolt. Disney chief executive officer Robert Iger told reporters on July 6 at the Allen & Co conference in Sun Valley, Idaho, Hulu\'s owners are committed to selling the company. Jobs is Disney\'s biggest shareholder. Morgan Stanley and Guggenheim Partners, bankers for Hulu, have elicited interest from Google, Yahoo, AT&T and other companies. Microsoft dropped out of the bidding, it was said. From / Gulf News