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LOS ANGELES (AP) -- Online video site
Hulu is up for sale again, with
Yahoo!(YHOO) and pay TV operators
Time Warner Cable(TWC) among the seven bidders, according to a person with direct knowledge of the matter.
The person wasn't authorized to speak publicly and spoke Friday on the condition of anonymity, after several news outlets reported on the bidding.
The person didn't offer details on the prices offered. Published reports have pegged a bid by a group led by former News Corp. executive Peter Chernin at $500 million. The three other bidders were all private equity firms:
Kohlberg Kravis Roberts & Co.;
Guggenheim Partners; and
Silver Lake, in partnership with talent agency
William Morris Endeavor, according to the person.
The person said the bidders would be narrowed down in the coming weeks.
Walt Disney Co.(DIS) and
News Corp.(NWS) control Hulu through their broadcast subsidiaries,
Comcast Corp.(CMCSK), owner of
NBC, is also an investor, although it gave up its say in Hulu's affairs as a condition of its purchase of
NBCUniversal in 2011.
Hulu's owners tried to sell the site before, but decided against it in 2011 after months of entertaining outside offers. Talk of a sale resurfaced after CEO Jason Kilar announced in January that he would step down at the end of March. Since then, Hulu has been led by interim CEO Andy Forssell.
Its owners have struggled over the right strategy for the service. It offers free viewing of recent episodes of broadcast network programs like the
ABC show "Modern Family" or the
NBC show "Saturday Night Live" with ads, but those episodes are also available elsewhere, including on the networks' own Web sites. The paid version, called Hulu Plus, provides access to a deeper catalog and allows viewing on mobile devices and Internet-connected TVs, but several networks including ABC and NBC have developed apps that allow full episode viewing on mobile devices for free.
Hulu made $695 million in revenue last year and said in April that more than 4 million customers pay $8 a month for Hulu Plus. Both Disney and News Corp. have said Hulu is losing money.