Oct. 13 (Bloomberg) — Providence Equity Partners Inc. sold its 10 per cent stake in Hulu.com back to company in a deal that values the video service at about $2 billion, two people with knowledge of the deal said.Hulu, based in Los Angeles, is borrowing the money to fund the repurchase, according to the people, who declined to be identified because the terms aren’t public. Separately, Hulu Chief Executive Officer Jason Kilar will receive about $40 million, the people said.
The purchase of the stake from Providence, a private-equity group that also owns a stake in Univision Communications, consolidates ownership of the video service with News Corp., Comcast Corp. and Walt Disney Co.
Elisa Schreiber, a Hulu spokeswoman, and Andrew Cole, an outside spokesman for Providence, declined to comment. The deal closed last week, the people said.
Providence Equity Partners, News Corp. and Comcast’s NBC Universal, then part of General Electric Co., started Hulu in 2007. Disney acquired a stake in April 2009.
Techcrunch reported the deal’s completion yesterday. 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.
–With assistance from Rob Golum in Los Angeles. Editors: Rob Golum, Anthony Palazzo
To contact the reporter on this story: Andy Fixmer in Los Angeles at [email protected]
To contact the editor responsible for this story: Anthony Palazzo at [email protected]
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