Software giant Microsoft is no longer in the running to acquire popular online video streaming service Hulu.
A person familiar with the situation told Bloomberg that Microsoft has informed Hulu executives that it won’t take part in the second round of bidding.
The source, however, didn’t rule out the possibility of Microsoft re-entering the bid at a later stage. Microsoft, along with Google, Yahoo and AT&T was approached by Hulu to make a bid for the company a while ago.
Microsoft already offers video streaming services on its Xbox 360 console and would have benefited from acquiring Hulu as it plans to turn the console into an all-out consumer entertainment unit.
One Business Insider source revealed that Yahoo is willing to pay as much as $2 billion for the acquisition.
The company plans to offer its suitors access to its content for the next five years. Hulu is a joint venture between Disney, News Corp. and NBC Universal, a part of the Comcast group. Online retail giant Amazon has not decided to participate in the bid until it gets a guaranteed access to Hulu content.