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Chernin Group gets $200m injection

Investors led by Hulu part-owner Providence Equity Partners are investing a reported US$200m in fledgling media firm Chernin Group.

Peter Chernin

Peter Chernin

The deal sees the investor group take an undisclosed minority stake in Chernin in return for finance that arms it for new global acquisitions.

Chernin CEO Peter Chernin said the goal was to create “a global, diversified media company.”

As part of the move, Providence executives will join the Chernin board, with Peter Chernin becoming a strategic advisor to the investment group in return.

Although financials terms were not disclosed, numerous reports value the deal at close to US$200m.

Chernin Group launched in 2009 after Chernin left his chief operating officer role at News Corp. Its assets currently include prodco Chernin Entertainment, which produces Fox shows New Girl and Touch, A&E Networks’ Breakout King and feature films; and CA Media, an Asia-focused expansion vehicle. It has also invested in firms such as blogging site Tumblr.

“Providence brings an exceptional track record of identifying and supporting the growth of innovative media and entertainment companies. With their additional expertise and resources, we intend to expand our company across all fronts,” said Chernin.

The two companies came close to making a joint bid for US web firm Yahoo! last year. They had previously worked together to launch video-on-demand platform Hulu, which Providence still operates with News Corp, NBCUniversal and Disney.

“We have worked closely with Peter for many years and have tremendous respect for his extraordinary creative savvy and world-class business acumen,” said Providence CEO Jonathan Nelson in a statement today. “We share the same outlook and enthusiasm for the significant media and entertainment investment opportunities around the world.”

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