Los Angeles-based web video service Hulu is prepared to raise as much as $300 million in an initial public offering likely to be led by Morgan Stanley, according to sources familiar with the matter.
Hulu is ready to raise $200 million to $300 million in a deal valuing the company at about $2 billion, and could file a prospectus with the U.S. Securities and Exchange Commission before the end of the year, one source said. Tapping public markets is one of several options under consideration as Hulu, which offers shows such as “Glee” and “Modern Family” over the Web, girds for battle against fast-moving rival Netflix and better financed big technology companies such as Google Inc.
The online video service, backed by General Electric Co’s NBC Universal, Walt Disney Co., News Corp and private equity firm Providence Equity Partners, was launched three years ago as an attempt to harness the explosive growth in online video viewing.
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