Internet video service Hulu is ditching plans to go public for now, choosing to focus on other financing options and new subscription models to expand a nascent pay-video business, the Wall Street Journal reported on Monday.
The online video operation, backed by Walt Disney Co, General Electric Co's NBC, News Corp and Providence Equity Partners, is exploring alternative means of raising capital, including getting existing investors to inject more capital, the newspaper reported, citing people familiar with the matter.
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Hulu's Chief Executive Jason Kilar and board members had discussed new subscription-based offerings last week, according to the report. But that would entail Hulu securing rights to content it does not already carry, according to the newspaper report, which added that it was unclear how existing pay-video service Hulu Plus could be affected.
Sources have previously told Reuters the online video site was angling for an IPO this year to raise $200 million to $300 million, bankrolling acquisitions of content. Such an IPO would have valued the company at about $2 billion.
Its Hulu Plus service officially debuted in November, giving online subscribers access to such hit shows as "Glee" and "30 Rock" through devices such as Apple Inc's iPad and Sony Corp's Playstation 3.
But the company was forced to cut its price to $7.99 per month from a preview price of $9.99, underscoring the intense competition in digital media among the likes of Netflix, Google (NASDAQ:GOOG), Apple (NASDAQ:AAPL) and Amazon.com (NASDAQ:AMZN).