The estimated $2 billion price wouldn't make a dent in Apple's cash reserves, but could position the company for more incredible growth
Apple has a lot of money to play with. The most recent earnings report made clear that, with millions of iPads, iPhones, iPods and other iThings sold every quarter, quarter after quarter, Apple has accumulated a huge stack of cash. $76.2 billion huge. Now everyone is wondering what they might do with it. Our own sister site, the Atlantic Wire, took a look at this question and concluded they could do one of three things: nothing, reward shareholders or acquire a company. They suggested Facebook, Groupon or Twitter. But they missed a big, easy target: Hulu.
Executives at the world's second-most-valuable company have considered making a move to buy the online video service, Bloomberg is reporting with two anonymous sources that have "knowledge of the auction" but weren't authorized to speak about the ongoing negotiations. A representative from Apple refused to comment. So, too, did one from Hulu.
"Hulu would give Apple a new subscription service and represent a possible challenge to Netflix Inc.," according to Bloomberg. "Hulu's media-company owners, Walt Disney Co., News Corp. and Comcast Corp.'s NBC Universal, are offering suitors a five-year extension of program rights, including two years of exclusive access, people familiar with the matter said earlier this week."