South Korea’s largest mobile operator SK Telecom are reported to have approached Samsung Electronics and Yahoo to discuss a possible takeover of online video service Hulu before scrapping the plan, Yonhap News reports.
It is believed that the mobile carrier had been deliberating over a potential bid since February, inviting Samsung and Yahoo to join its consortium, with the search engine company dismissing the proposal from the Korean firm because SK Telecom proposed a 50% stake in the video service.
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High cost forced SK Telecom to abandon its plan, suggesting that the company needed assistance to raise the captial needed to purchase Hulu. According to the report, the company was willing to spend as much as 1 trillion won ($921 million) in the proposed consortium bid.
SK Telecom has since denied reports that it will submit an offer for the US video company:
“SK Telecom is not considering taking part in the takeover of U.S. video service firm Hulu and has no intention to take part in the acquisition”.
Samsung has also denied the company was approached by SK Telecom, calling reports “groundless”, adding that the company will not bid for Hulu.
Hulu, founded in 2007, expects to sell for at least $2 billion, with the deadline for initial bids ending this Saturday. Yahoo, Google, DirecTV and Amazon are are expected to submit a letter of intent, according to Reuters.