Providence Equity Partners Inc. are cashing out their stake in Hulu to Disney, Comcast, and News Corp. Sources told Bloomberg that “Providence is selling its 10 percent share in Los Angeles- based Hulu for about $200 million after investing $100 million when the venture began in 2007.”Providence is a private equity firm specializing in media, communications, education. According to the story, “Disney, News Corp. and NBC Universal each hold Hulu stakes of about 27 percent, while employees own about 10 percent.” Bloomberg says that Hulu CEO, Jason Kilar, and other employees of the company will be allowed to sell their shares in this deal as well. Variety notes that Kilar could dump his stake in Hulu and walk away with about $100 million. If this goes through, Adweek says this could hurt Hulu in the long run: “Hulu could lose exclusivity on its third-party content from broadcasters Disney and News Corp. (NBCU lost its ability to influence Hulu’s decisions when it merged with Comcast,though its content is still broadcast on the service), meaning that Disney, for example, could air ABC shows first on another third party’s application.”
Last August, there was strong speculation that Hulu would be bought out.
