Netflix Backs Out of Hulu Auction

Popular movie streaming service Netflix is not in the running to acquire rival Hulu, it has been reported.

Both Hulu and Netflix were not interested in a deal that would consolidate the services offered by the two streaming giants, The Wall Street Journal reports.

According to the WSJ, as both the services have signed deals with Hollywood studios, they would not want if both the companies got combined as they would lose out on a revenue stream. Additionally Hulu also provides some programs to Netflix and the merger would definitely decrease the revenue generation for Hulu.

Hulu, which is jointly owned by News Corp., Comcast and Walt Disney, has been in talks with potential suitors to sell itself to the highest bidder. However, Comcast, which got its stake in Hulu by acquiring NBC Universal, won’t be able to take a decision on the sale.

The streaming service is now in the process of renewing its licensing deals with Fox, NBC Universal and Disney, to make it look more attractive to a potential buyer.

Hulu expects to reach the one million paying customers mark by the end of the summer. The company had earlier forecasted that it will reach that mark by the end of this year.