Rumors are circulating that three of the partners in Hulu are feeling out the possibility of buying out a 10% stakeholder.
According to a report from Bloomberg, Walt Disney, Comcast and News Corp are looking to buy out the 10% stake of Hulu owned by Providence Equity Partners Inc. Source with knowledge of the matter who are not authorized to speak publicly are saying that the three major shareholders are looking at a buyout price of $200 million for that minority share. That isn’t a bad profit for Providence as it invested $100 million in 2007 in the streaming media company, and it also place a valuation on the company of $2 billion.
This is an intriguing move as it follows on the heels of an auction to sell off the service last October. When the bids came in lower than expected, the partners in the company decided to abandon the sale and just keep moving forward. Since then Hulu has launched its first original series, partnered up for overseas distribution and had its biggest quarterly gain of new subscribers to Hulu Plus yet. Was the auction something Hulu wasn’t really that interested in, or are the partners just deciding since it couldn’t be sold to just go as big as possible with it now?
For now it looks like Hulu is staying where it is, just with possibly one less owner.