And then there were three.
Providence Equity Partners closed the sale of its 10 percent stake in streaming entertainment property Hulu last week, VentureBeat has confirmed. The early backer sold its stake, originally purchased in 2007 for $100 million, back to fellow Hulu co-owners News Corp., Comcast, and Disney for $200 million, according to multiple reports.
The deal values Hulu, which provides ad and subscription-supported access to television shows and movies, at $2 billion. Hulu made about $420 million in revenue in 2011. The service has a paying subscriber base of more than 2 million people.
The sale, expected since April, gives the private equity firm an exit from a company that’s toyed with, but never followed through on, both an IPO and a sell-off. Last year, Hulu was unable to come to an agreement with Google. Google reportedly offered more than $4 billion, but wanted longer-term guarantees on Hulu’s content licenses.
Hulu’s equity buy-back also creates liquidity options for employee shareholders, including CEO Jason Kilar, who could net as much as $40 million as a result of the deal, according to Bloomberg.
With the deal done, Hulu’s future seems uncertain, especially considering that multiple reports peg Kilar as already having one foot out the door.
Hulu declined to comment on this story.