Business

Time Warner Cable considering bid for Hulu

Time Warner Cable CEO Glenn Britt (above) is lining up partners to bid for Hulu.

Time Warner Cable CEO Glenn Britt (above) is lining up partners to bid for Hulu. (UPI)

The cable guys are circling Hulu.

Time Warner Cable CEO Glenn Britt has been talking with other cable-TV providers about making a joint bid for the Web-TV hub, The Post has learned.

Cable companies would make logical buyers. With consumption of Internet video on the rise, the cable industry is feeling the heat from Web streaming services such as Hulu, Netflix and Amazon that offer a range of TV shows and movies.

The cable companies could also turn Hulu into an “authenticated” service, meaning subscribers would get it for free so long as they continued to pay their cable bills.

Hulu has hired Guggenheim Partners to explore a sale, among other options, as owners mull its future. Hulu is jointly owned by News Corp., Disney, and Comcast NBCUniversal. News Corp. also owns The Post.

“They want real bids in by May 23,” said a source familiar with the sales process. “There’s a group of cable companies with Time Warner Cable. Britt is trying to take the lead. Comcast doesn’t have to sell. They could keep their interest.”

Comcast, the nation’s largest cable provider, controls about a third of Hulu but is barred by regulators from exerting control over it as a condition of its NBCUniversal purchase in 2010.

Comcast would keep its stake in Hulu under the scenario being discussed with the cable players buying out the other partners.

“[Comcast CEO] Brian Roberts is pretty hot on the idea,” said one source.

While Time Warner Cable declined to comment, sources say Britt has been sounding out rival operators.

Cable companies seem to be preparing for a day when broadband access is a bigger business than pay-TV packages.

While customers are dumping TV service in greater numbers, they continue to sign up for high-speed Internet.

Hulu’s co-owners have been conflicted about the site almost since its inception. They ramp up digital distribution of their shows through their own properties, while imposing constraints on Hulu’s access to fresh episodes and other content.

Disney, for instance, introduced its own live streaming app this week, potentially negating the need to go to Hulu.

The owners also have been criticized by the pay-TV industry for giving away content to Hulu, which now has a paid premium tier of about 4 million customers.

Beyond a sale, Hulu’s owners have been considering other options for the company, which posted an operating loss of $30 million last year on revenue of roughly $700 million.

Hulu’s worth has bounced around as well. Google reportedly was interested in buying it at a valuation of between $1.5 billion and $2 billion.

Currently, media vet Peter Chernin, a former News Corp. COO, is believed to have the lone offer of $500 million. Yahoo! also has reportedly been in talks with Hulu, as has Guggenheim Partners even though it is running the sales process.