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Providence Equity Partners is selling its 10% stake in Hulu to co-owners Disney (DIS), Comcast...

Providence Equity Partners is selling its 10% stake in Hulu to co-owners Disney (DIS), Comcast (CMCSA), and News Corp. (NWS, NWSA) at a $2B valuation, Bloomberg reports. The valuation is just slightly above $1.9B offer Dish Network reportedly made for Hulu before last year's sales process was cancelled. Hulu's revenue rose 60% last year, but is still only a fraction of Netflix's (NFLX).
Comments (4)
  • JeffreyLangBoyd
    , contributor
    Comments (645) | Send Message
     
    So Hulu, a company with less than 1/10th the number of customers as NFLX (around $4.5B enterprise value) just had a transaction that indicates a $2 billion enterprise value. Kind of makes me want to run out and buy more than the small position that I currently have. I'll try and fight the urge as it is more risk than I want but wouldn't it be nice to have an SA article discussing this.

     

    Hulu's revenues do appear to be growing faster than NFLX so they likely deserve a richer valuation but $2B v $4.5B?
    27 Apr 2012, 01:20 PM Reply Like
  • BDUBS
    , contributor
    Comments (51) | Send Message
     
    You might want to read the most recent sec filings to fight that urge-NFLX has @ 4B in liabilities(nearly all off balance sheet). Content is expensive and prices are soaring for it.
    1 May 2012, 10:47 AM Reply Like
  • JeffreyLangBoyd
    , contributor
    Comments (645) | Send Message
     
    Are you saying Hulu gets their content for free? That would be quite a shock.
    1 May 2012, 01:41 PM Reply Like
  • BDUBS
    , contributor
    Comments (51) | Send Message
     
    by no means-typically, they have revenue sharing deals with their content partners on both subscription and advertising revenues.
    2 May 2012, 01:25 PM Reply Like
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