Providence to sell 10% Hulu stake


HuluProvidence Equity Partners sold its 10% stake in back to company for $200 million, in a deal that values the video service at about $2 billion. Hulu is borrowing the money to fund the repurchase, according to a Bloomberg story. Separately, Hulu CEO Jason Kilar will receive about $40 million.

Hulu’s buyout from Providence, the private-equity group that also owns a stake in Univision, consolidates ownership of the video service with News Corp., Comcast and Disney. The deal closed last week, the story said.

The media companies were near agreement to buy out Providence’s stake for $200 million, people familiar with the matter told Bloomberg News in April.

Hulu offers movies and a ton of archives from TV’s past, from the 50’s to today. Today’s online episodes include shows such as “30 Rock” from Comcast’s NBC, Fox’s “Family Guy” and ABC’s “Grey’s Anatomy.”

In April, Hulu said its $8-a-month Hulu Plus, which lets users view an expanded library of shows on game consoles and mobile devices, had more than 2 million subscribers.

See the Bloomberg story here.

RBR-TVBR observation: It’s good ROI: Providence invested $100 million in LA-based Hulu when the venture began in 2007.