NBC U/News Corp. Site Gets Cash Injection

Providence Equity Partners Invests $100M for 10% Stake

By Jon Hemingway -- Broadcasting & Cable, 8/9/2007 7:15:00 PM

Providence Equity Partners will invest $100 million in the joint venture assembled by NBC Universal and News Corp. For its investment, the private-equity firm will take a 10% stake in the online-video Web site, according to a report in The New York Times.

When the JV was announced in March, it was billed as the “largest Internet-video-distribution network ever assembled.” Designed to rival YouTube, the yet-to-be-named Web site would be filled with ad-supported clips, full-length television shows and movies for sale from both the News Corp. and NBC U stables. The site will also feature content from Comcast’s suite of programming, which includes E! Entertainment Television and Style, as well as from CNET and TV Guide Network.

The venture’s distribution partners include AOL, CNET, Comcast, MSN, MySpace and Yahoo!.

The site’s newly minted CEO, Jason Kilar, is working hard to ensure that it launches in the fall.

Providence and News Corp. declined to comment.