A private equity firm has injected $100 million for a 10 percent stake in a new online video joint venture between NBC Universal and News Corp, valuing the new entity at a cool $1 billion.
The new online entity, which is being internally referred to as “New Site” because, well…they don’t have a name for it yet…is destined to be an online showcase for the television shows and movies owned by the two media companies.
Executives from NBC and News Corp have mentioned that New Site isn’t going to be a direct competitor to YouTube, although they have confirmed that user generated content will make up some of the site’s videos.
A Rhode Island company, Providence Equity Partners, is behind the $100 million backing. It’s CEO, John M. Nelson, is no stranger to the media industry – he has interests in other companies such as MGM, Warner Music Group and Yankees Entertainment and Sports Network.
New Site might be up and running by autumn in the US.
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