Report: Hulu Prepping To File For $2 Billion IPO
According to a Reuters report, Hulu is preparing to IPO in the first half of 2011. Sources told the news organization that Hulu will be looking to raise between $200 million and $300 million in a deal valuing the company at about $2 billion.
Hulu is expected to file with the Securities and Exchange Commission before the end of the year, which set the company to IPO anywhere between January and May of 2011. Reuters’ source says the offering is “contingent on the renewal of rights to carry shows, some of which expire in a year.”
This is probably another way that Hulu is testing the waters for an IPO. While the company may claim high revenues ($100 million in 2009), it is still not clear how profitable Hulu can be, or how viable its long-term survival will be. Hulu already has to fork over as much as half or more of its advertising revenues to its TV network partners/backers (Fox, NBC, and ABC).
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