Hulu Valued at $2 Billion in Deal to Buy Out Providence Equity for $200 Million
Posted on April 26, 2012
Bloomberg reports that Hulu.com's owners are buying out their venture capital partner, Providence Equity Partners Inc. Walt Disney Co., Comcast Corp. and News Corp. are buying Providence's 10% stake in the venture for $200 million, according to Bloomberg's sources.
Providence invested $100 million in the company in 2007. The reports say Hulu.com is now being valued at $2 billions. As part of the deal, employees will be able to sell some of their shares and cash out. Hulu says it now has 2 million subscribers to Hulu Plus who pay $8 a month for the service.
Hulu is currently working on expanding its roster of original programming in a bid to get more advertisers.