Disney says Hulu is running low on cash.
With all the rumors lately about Disney possibly cutting a deal with Hulu, various sources at Disney are talking to many on Wall Street about Hulu’s financial situation saying the company is getting low on cash. While Providence Equity Partners, who put $100M into Hulu two years ago, is saying Hulu is not having any finance problems, I tend to believe Disney. No company who is ever running low on cash says they are and their investors always tell you things are fine.
Hulu indeed may be running low on cash. It is expensive to run a video site. But it doesn’t mean they can’t raise more money. It also doesn’t mean its current owners, most notably News Corp and NBC Universal, won’t invest more money. I think Hulu is a great asset for their current owners in particular and hollywood in general to help them transition into the new media. If Hulu is shutdown no one will be happier than Google. Google then will eat hollywood’s lunch. Youtunbe, owned by Google, has Hulu envy. There is a good reason for that. Hollywood should get a clue from that. Disney is probably saying it to get a leverage in their negotiations with Hulu. That doesn’t mean that Hulu is in trouble.