• The New York Times, Thursday, August 9, 2007 11 AM

Five months after announcing a vague and still nameless joint venture, News Corp. and NBC Universal's video project is still short on details, but long on cash. Rhode Island investment firm Providence Equity Partners on Thursday secured a 10% stake in the joint venture, code-named "New Site", with a massive $100 million investment.

What follows now is the creation and deployment of New Site's media player and the digital transfer of the companies' massive catalog of content. Providence's principals have an extensive traditional media past: leader Jonathan M. Nelson currently sits on the boards of MGM, Warner Music Group and Yankees Entertainment and Sports Network. In the past, he's invested heavily in local newspapers, TV stations and cable networks.

If PEP's investment is $100 million for a 10% stake, the joint-project is being valued at $1 billion. Todd Dagres, general partner of the media-focused VC group Spark Capital, called it a "startlingly rich valuation" for an as-yet unformed company that couldn't be sold or go public yet.

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