Hulu to sell itself, gets $500 million bid

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Peter Chernin is interested in the video streaming site, Reuters sources say.

Late last week, Reuters reported that former News Corp president Peter Chernin, who now runs The Chernin Group, made a $500 million bid to buy the TV streaming website. The Chernin Group owns stakes in Pandora Media Inc and the related production company Chernin Entertainment has produced films and TV shows such as New Girl, Terra Nova, and Rise of the Planet of the Apes.

Hulu is currently jointly owned by News Corp and Walt Disney Co. Peter Chernin had a hand in building Hulu back in 2007 when he was on the website's board, says Reuters. Chernin left News Corp in 2009 to build his own company. According to Reuters, News Corp and Walt Disney Co "reached out to potential buyers in March [of 2013] after initially contemplating a deal in which one [News Corp. or Disney] would buy out the other. It is not clear whether that transaction is still being contemplated."

Last year, Providence Equity Partners invested $200 million in The Chernin Group, and then turned around and sold its 10 percent stake in Hulu for $200 million dollars. That put the valuation for the streaming service at $2 billion total. Hulu has three million paying subscribers for its premium service, and reported $700 million in revenue last year.

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