Providence Equity Partners Inc. bought up a ten percent stake in Hulu, an online streaming video service, in 2007 for about $100 million. Now, the private equity investment firm is ready to part ways with that stake in the company, and is ready to except $200 million for it. Estimates say that puts Hulu's value at about $2 billion.
Other owners, Walt Disney Company, ComCast Corporation, and News Corp. are close to buying out Providence. Hulu plus currently has over 2 million paying subscribers and 38 million monthly visitors to their free streaming site.
The LA Times reports that this shift of ownership could help streamline the decision making process when it comes to deciding a direction for the future of Hulu. Apparently this has been a point of contention for shareholder. Comcast, who controlled NBC Universal's seat on the board agreed to give it up as part of an 2011 settlement with federal regulators. The concern was that Comcast would stifle Hulu due to a conflict of interest with their own bundled-channel television service.
Take a look at this Bloomberg report on the Hulu sale:
We'll be keeping an eye on this sale from Providence and how it ultimately effects Hulu. It could be that the new ownership will mean some drastic changes for the streaming video service. Check back here for updates on Hulu.