Providence Equity Partners Plan To Invest $100 Million Into News Corp/NBC’s Future Video Site

Posted Aug 9, 2007

NBC and News Corp. seem to still be bitter about the massive amount of traffic and attention YouTube is receiving. To the media world, YouTube is looked at as the thief as the neighbor that will borrow your lawn mower and other home maintenance tools, then won’t give it back. Meaning, content that is syndicated to these media companies land on Plymouth “YouTube” Rock and the media companies don’t get any bounty from discovering the land.

The name of the video site is still T.B.D. and will feature content from shows produced by NBC and FOX. I can’t even fathom the negotiations that took place to make this video deal happen between these two companies, because I could have sworn that they are each other’s biggest competitors. I guess YouTube would do that to ya.

Perhaps the inspiration for pursuing and announcing the idea was fueled by interested investors. More specifically, the $100 million for 10% equity deal that Providence Equity Partners is willing to bet on. Through this new venture, a CEO was pulled in for the unnamed company, Jason Kilar. Kilar may be expected to sign deals with other potential content providers (i.e. Disney, CBS, Viacom, etc.).

Another factor to be considered for “New Site” will be considering how to capture the market that Joost has. The idea of Joost has been around for just as long and has changed names (from The Venice Project) and released a Beta product since then. Internet streaming video is moving fast, but perhaps the way that the media companies enter the market may bring meaning to the expression, “well, he knows how to make an appearance.”

[1] Red Herring: Big Money for Big Media