• Reuters, Friday, October 8, 2010 12:48 PM

Premium video hub Hulu is ready to raise $200 million to $300 million in an initial public offering, Reuters is reporting, citing sources. Likely to be led by Morgan Stanley, the deal would value Hulu at about $2 billion. One source tells Reuters that Hulu could file a prospectus with the U.S. Securities and Exchange Commission before the end of the year.

Why so soon? Netflix and Google, and their encroachment on Hulu's territory, i.e., premium streaming video. Of note, the offering is contingent on the renewal of rights to carry shows, some of which expire in a year, according to Reuters. In lieu of an IPO, sources tell Reuters that Hulu could bring in other media companies to contribute new programming, or raise more money from existing partners. Backed by NBC Universal, Walt Disney, News Corp and private equity firm Providence Equity Partners, Hulu is presently the second-largest Web video service behind Google's YouTube in the United States.

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