Video streaming site Hulu sounds out $2bn flotation

 
Steve Dinneen
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ONLINE video site Hulu could become the biggest internet IPO of the year after its owners began sounding out the market for a potential $2bn (£1.3bn) listing yesterday.

The joint venture between Disney, News Corp, NBC Universal, who all own 27 per cent
of the firm, and Providence Equity Partners, was launched to combat the prevalence of
piracy on sites such as YouTube. The US-based firm is a rival to video screening sites such as Apple TV and Netflix. Industry sources say the media giants are raising the cash to further extend the reaches of the site, which is known for screening hit shows such as Family Guy and Glee before its rivals.

A Hulu spokesman told City A.M.: “We do not comment on market rumour or speculation.”

Hulu is second only to YouTube in terms of unique users in the US but still trails far behind its Google-owned rival. However, it pushes almost twice the number of adverts and reportedly hit revenues of around $100m last year.

The video streaming industry is rapidly expanding as studios seek alternative revenue streams in the face of internet piracy.

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