If you live in the US, odds are you've used Hulu. You probably even think it's a cool service. But do you think it's worth $2 billion? That's apparently what Hulu thinks they're worth according to a report from Reuters. Sources say that Hulu is looking to raise $200-300 million in an IPO , which would value the entire company at about $2 billion.
The official filing should hit the SEC late in 2010, meaning the IPO will happen in the first half of 2011. Sure, these are some big numbers, but investors are still skittish. Hulu's entire business model relies on their network partners continued generosity. If they chose not to license content to Hulu, the site would quickly die. As it is, Hulu has to pay nearly half its ad revenue to content partners.
The recently launched subscription service is perhaps another way to pull in some cash, but it remains to be seen if Hulu can attract significant numbers of users. Still more, can they get the content deals to fill out the selection? What do you think Hulu's future holds?