Hulu might be worth as much as $2 billion, the New York Times reported today, alongside news that the site for streaming videos and TV shows might soon go public.
The Times reported that the 3-year-old company has been in talks recently to begin a public stock offering potentially later this year. So far in the site's short existence, it has struggled to turn a major profit. Last year the company reportedly brought in $100 million.
And according to MSNBC , Hulu ads reached almost 8 percent of the American population in June and in July reached almost 30 percent.
An IPO, as well as an upcoming monthly subscription of $9.99 for Hulu Premium, could bolster the site's status, compared to rivals like YouTube and Netflix' video streaming service. Hulu Premium provides more selection, like complete seasons' of shows, and service on more devices.
"As a publicly traded company, Hulu could have more resources to continue its expansion, making cable and satellite companies even more nervous about IP-delivered programming. By shifting the cost of the data connection and hardware to the consumer, Hulu could conceivably offer the same service for less than it would cost through cable and satellite middlemen," Eliot Van Buskirk wrote on Wired today. "Another company with reason to fear Hulu is Netflix, because both companies are fighting to deliver both television shows and films over the internet, and only Hulu is partially owned by the same companies that own the content."
Hulu was created as a joint venture by NBC Universal, News Coporation, the Walt Disney Company.
