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The Hulu sale is casting a shadow over Sun Valley.
The auction for the Web video hub is starting to rankle bidders, with suitors wondering what program rights are included in the hefty billion-dollar price tag and whether the owners are truly committed to a sale, sources tell us.
“There’s a lot of frustration on all sides,” one source said. “This industry just can’t work together.”
Time Warner CEO Jeff Bewkes joked last night that a Hulu buy was a tough call since no one knew exactly “what ‘it’ is.”
Hulu was put up for sale two years ago, and still there’s no conclusion.
DirecTV, the largest satellite-TV provider, is considered the frontrunner as it offers a large built-in subscriber base and simplified ownership structure relative to some of the other bidders.
“[CEO] Mike White really wants it,” said a source.
A group led by entertainment exec Peter Chernin and financed by telecom giant AT&T is also in the mix, as is No. 2 cable provider Time Warner Cable.
“Chernin is resigned to not getting it if it doesn’t work out,” the source said.
Nevertheless, some sources believe that, with Chernin’s relationships with Hulu’s big media backers, his knowledge of the business could prevail.
Hulu is owned by Comcast, Disney and 21st Century Fox.
One person familiar with the Chernin-led bid said it would include a promotion for Hulu inside AT&T’s 2,200 stores across the country.
Liberty Media Chairman John Malone, who owns stakes in Time Warner Cable and Charter Communications, said yesterday that a cable-industry consortium should have bid for Hulu.
Local color
CBS chief Leslie Moonves — a relentless cheerleader for traditional broadcast TV — was ebullient about the media business last night after an al fresco Herb Allen-hosted dinner at the edge of the ice-skating rink.
When asked about a rash of local station sales and whether CBS would be a buyer in the suddenly red-hot market, Moonves said, “Yes, if they fit.”
CBS is already a major station owner with 29, mostly in big markets.
Asked why they’ve suddenly become more valuable, Moonves responded, “Retransmission, and advertising is way up.”
Hash it over
Twitter CEO Dick Costolo isn’t allowed to tweet at the annual Allen & Co. retreat, but he told the press he is following the hashtag #SunValley13.
Costolo was less game when asked about speculation that Twitter was planning an initial public offering in 2014.
“I’m tired of that question,” he said.
Costolo did want to discuss Vine, the firm’s short-form video app, saying the team working on it would be rolling out some new features soon.
Costolo is a regular here and recalled being on a tech panel with former Groupon boss Andrew Mason and Zynga’s former CEO, Mark Pincus.
When reminded he’s the only one still in the same job, he said: “Oh no. I’m the last man standing.”