Microsoft has dropped out of the bidding for television streamer Hulu, according to Internet reports.
Software giant Microsoft went through the first round of bidding with Hulu, but declined to continue onto the second round, a source told Bloomberg News. It's still possible for Microsoft to jump into the bidding later, but it appears to be unlikely.
Microsoft has been working on different streaming options for its Xbox consoles, including creating a live television stream option. It already has a deal in place for movies with Netflix, but has apparently decided against pursuing
Besides Microsoft's original interest, Google, Yahoo!, and AT&T are expected contenders for the company. As many as eight unnamed companies could also be in the running for Hulu, according to Bloomberg.
Hulu is prepared to offer five years of online content, including two years of exclusivity, featuring Disney, NBC, and Fox programming.
According to the same report, Yahoo is prepared to offer Hulu $2 billion but wants the exclusive rights to four to five years of Hulu programming.