(Corrects month of Providence's investment in TCG to April, not
November, in fifth paragraph)
By Ronald Grover and Jennifer Saba
LOS ANGELES/NEW YORK, April 5 Former News Corp
president Peter Chernin bid around $500 million for Hulu, the
online video streaming service he helped create in 2007,
according to two sources with knowledge of Hulu's sale process.
The website, jointly controlled by News Corp and
Walt Disney Co, reached out to potential buyers in March
after initially contemplating a deal in which one would buy out
the other. It is not clear whether that transaction is still
Chernin, a former Hulu board member who now runs a media
holding company, is among those interested, the sources said on
condition of anonymity because the bidding is not public. It is
not known if other bidders have come forward.
Chernin left News Corp in 2009 to assemble The Chernin
Group, whose holdings span film and TV production and owns
stakes in high-tech companies, including online radio service
Pandora Media Inc.
Providence Equity Partners invested $200 million in The
Chernin Group in April 2012. The private equity firm sold its 10
percent stake in Hulu in October for $200 million, valuing the
streaming service at $2 billion.
Charles Sipkins, Chernin's spokesman, would not comment.
Hulu spokeswoman Elisa Schreiber also had no comment.
Representatives for News Corp did not respond to requests for
comment. Disney declined to comment.
Hulu's owners have for years pondered the direction of a
service that now has more than 3 million subscribers for its
premium offering and generated revenue of about $700 million
A third owner, NBC parent Comcast Corp, gave up
corporate control as a condition of buying NBC Universal.
The owners have shopped Hulu before, rejecting bids in 2011.
The company also considered an initial public offering in 2010.
(Editing by Edwin Chan and Andre Grenon)