Hulu Acquisition Update: Apple Planning to Bid

Two close aides have revealed that Apple Inc. is planning to acquire web-based video service provider Hulu.

According to tech website CNET, the Cupertino, California-based iPhone maker is planning to bid for acquiring online video service Hulu which is headquartered in Los Angeles, California to build a strong library for its iTunes services.

The information has been provided by two sources that are close to the auction and wish to remain unnamed. The auction is being maintained and conducted by two investment banks hired by Hulu.

Apple is not the only company in race. Rivals including Google Inc., Yahoo Inc., Microsoft Corp., and network carrier AT&T are already negotiating deals with the company which is jointly owned by Walt Disney Co., News Corp., and NBC Universal. The deal will offer the winning bidder five years exclusive rights on programmes, and access to the company content and services.

Market analysts believe that big companies bidding for the rights may increase the price over $2 Billion. Hulu could be one big acquisition for Apple Inc. whose last big purchase of a company was in 1996 for Next Software Inc. The deal brought current chief executive and founder of the company, Steve Jobs back on board.