As a source revealed, Hulu is planning an IPO which could raise anywhere between $200-300 million, and hoist its total value to right around a sweet figure of $2 billion; a respectable figure for the second largest video site in the U.S.
As some insiders say, a filing by Hulu in the end of the year would be ideal – such a move may even give the company the option to push its IPO in January or February, but only under some conditions – particularly if the new issue market improves. Furthermore, it may provide the basis for another offering around April or May.
As quoted from peHub:
“The IPO plan could be filed with the SEC this year and take place in the first half of 2011. The deal would value the company at about $2 billion. The online video service is backed by General Electric Co’s NBC Universal, Walt Disney Co, News Corp and private equity firm Providence Equity Partners.”
With big names such these standing behind it and banks including Goldman Sachs, Bank of America and JPMorgan offering it to lead the offering, Hulu is certainly ready.
The global online video market expected to reach an all time high of $16.1 billion by 2012, but in the light of its big-name rivals such as Netflix, Google, Amazon etc, Hulu needs a battle plan, say, such as its pending ones to attract other media companies and tapping public markets.
In a multibillion paid and ad-supported online video services market there are not many details uncovered regarding its IPO, but with a prediction the offering is too small to provide much liquidity to shareholders, it’s all about the good buzz for Hulu.
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