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HULU’S MEDIA PARTNERS BUY OUT THEIR PRINCIPAL INVESTOR

October 15, 2012 by · Leave a Comment 

The three media companies that operate the Hulu and Hulu Plus online video service, which mostly offers reruns of TV shows, have reportedly bought out their partner, Providence Equity Partners, which invested $100 million to help launch the venture in 2007. According to Bloomberg News, NBC Universal, The Walt Disney Co., and News Corp, who each own 30 percent of Hulu, paid Providence $200 million for its 10 percent. The buyout had long been expected. Numerous reports have indicated that the three media companies that own the website continue to lock horns over how to profit from it without cannibalizing their other operations — like subscription video-on-demand. Last August, Fortune magazine commented: “Hulu’s owners should be crowing about their spectacular success. Instead, they are bickering bitterly, casting the firm’s future into doubt.”