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Wednesday, September 7, 2011

Is a Google Acquisition of Hulu a DOJ Issue, Too?

We all know that Hulu's partners would like a little return on their investment. And with Hulu's announced sale, the list of buyers are well known. "Hulu’s corporate owners are currently mulling bids from three would-be buyers: Amazon, Yahoo, and the Dish Network. And then there’s Google." AllThingsD is reporting that Google is willing to pay more than the others to acquire Hulu.

I have speculated in previous blogs that a Hulu deal may require more long term content deals and Google seems to agree. Should Google be an active buyer, the question is, should the Department of Justice be equally concerned about one company owning the majority share of online video? Like their suit against AT&T getting to big and monopolistic, is the same true for Google? Does this type of acquisition fan the flames for more monopolistic drama?

You Tube already has the biggest share of usage and I wonder if real synergy actually exists by adding Hulu. Couldn't You Tube simply make the same deals without also buying the Hulu platform. And Google already has potential antitrust drama with its planned Motorola. With all their efforts to succeed with that acquisition, the timing may not be right anyway to try and also acquire Hulu.

Still the rumors are out there and it is fun to speculate what will happen next. For me, I think I will guess that Dish or perhaps Yahoo are the final buyers.

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