Published October 19, 2012
Providence Equity Partners said on Friday it had sold its 10 percent stake in online video site Hulu. The private equity firm's press release followed media reports in the last two weeks that the sale would take place.
Providence sold its stake for around $200 million, doubling its initial investment, according to a source familiar with the matter who requested anonymity because of lack of authorization to speak to the press.
Providence's exit leaves Hulu in the hands of Walt Disney Co, News Corp and Comcast Cable's NBC Universal.
"Providence has been an ideal partner over the past five years, dating back to the days when Hulu was simply an ambitious idea," Hulu CEO Jason Kilar said in a press release. "The entire Providence team has added value far beyond their invested capital, and we are extremely thankful for their high judgment, insight and collaborative approach."
Hulu put itself up for sale in 2011, with suitors including Google Inc, Amazon.com Inc, DirecTV Group Inc and DISH Network Corp, Reuters reported at the time. But the talks collapsed over the price of the deal.
Providence manages around $27 billion in equity commitments and has invested in more than 130 companies since its inception in 1989 - focusing on media, communications, education and information companies around the world.
Significant current and previous investments include AutoTrader.com, Blackboard, Bresnan Communications, Warner Music Group, and Yankees Entertainment and Sports Network.
(Reporting by Olivia Oran; Editing by Phil Berlowitz)