LOS ANGELES – The Walt Disney Company is buying in to U.S. on-line video service Hulu as a joint venture partner and equity owner.
Founded in March 2007, Hulu is currently co-owned by NBC Universal, News Corporation and Providence Equity Partners. The on-line aggregator of video content offers a selection of television shows, clips and movies from 150 content companies at its website Hulu.com and 35 other destination sites on-line, such as AOL, MSN, MySpace and Yahoo!.
The agreement will see some of Disney’s most popular prime time series and feature films added to Hulu’s lineup – from full length episodes of ABC prime time shows like Lost, Grey’s Anatomy, and Desperate Housewives to family-oriented titles from The Walt Disney Studios.
“From our landmark iTunes deal to our pioneering decision to stream ad supported shows on our ABC.com player, Disney has sought to meet the constantly evolving viewing habits of our consumers, and today’s Hulu announcement is the next important step in that ongoing journey,” said Robert A. Iger, president and CEO, in a press release. “Disney and Hulu share a focus on delivering the highest-quality entertainment experience and we look forward to working with Hulu to build value for our consumers, our brands and our shareholders.”
As an equity partner, Disney will have three seats on the Hulu Board that will be held by Iger; Anne Sweeney, co-chair of Disney media networks and president of the Disney/ABC Television Group; and Kevin Mayer, executive vice president of corporate strategy, business development and technology. All other current directors from News Corp, NBC Universal and Providence will remain on the Hulu board.
The transaction is subject to customary closing conditions, including regulatory review.
