Providence Equity takes minority stake to fund expansion
Providence Equity Partners and other unspecified investors will provide Chernin with the financing that will fuel investments including a piece of Endemol India. Chernin in turn will become a senior adviser at Providence.
“Providence brings an exceptional track record of identifying and supporting the growth of innovative media and entertainment companies,” said Chernin in a statement released late Sunday. “With their additional expertise and resources, we intend to expand our company across all fronts.”
While Chernin did not disclose the level of investment, The New York Times characterized the deal as being worth $200 million.
Since exiting News Corp. in 2009, Chernin has made the most of a production deal with his former conglom, scoring hits in both film and TV including 20th Century Fox theatrical “Rise of the Planet of the Apes” and the Fox series “New Girl.” But with Providence on board, he’s set to take his ambitions to the next level particularly in Asia, where he already maintains an investment company, CA Media.
Providence is best known in media circles for its stake in Hulu, which it shares in partnership with News Corp, NBCUniversal and Walt Disney Co. Chernin was instrumental in the launching of Hulu before he left to start his own company.
Chernin’s plan for the next stage of his company’s growth is to funnel the profits from successful entertainment properties into a wide range of investments in digital media, which already include up-and comers like Pandora, Flipboard and Fullscreen.