Boston, MA 05/20/2013 (wallstreetpr) – The share prices of DirecTV (NASDAQ:DTV) surged by 0.8 percent to close at $65.21 following the anticipation that the company is aiming to acquire stake in Hulu LLC. This attempt would provide the largest US satellite TV provider to extend to an internet based video platform through streaming online services of programs.
Hulu LLC
Hulu LLC, a privately held firm is jointly owned by Walt Disney Co., News Corp. and Comcast Corp. and is on the lookout for buyers to take up the company. The recently potential buyers include Time Warner Cable Inc. (NYSE:TWC) in addition to DirecTV (NASDAQ:DTV). However, the largest satellite provider of United States, DirecTV (NASDAQ:DTV) had been viewing the takeover of Hulu LLC, long since 2011.
The plans of DirecTV (NASDAQ:DTV) to acquire partial or full stake in Hulu LLC in 2011 did not materialize due to the limited content rights of the online website of the company. However, presently the second largest satellite provider of US, the Time Warner Cable Inc. (NYSE:TWC) is also looking out to acquire stake in Hulu LLC.
Competitive Advantage
The partial or full acquisition of Hulu LLC would enable DirecTV (NASDAQ:DTV) to gain further market share in the internet based TV platform. The satellite provider is presently providing live and on demand streaming of its video content on the internet to a limited extent. With Hulu LLC planning to focus on local businesses and thereby double the number of advertisers by this year, acquisition of stake in the company would prove to be valuable competitive advantage for DirecTV (NASDAQ:DTV).
