Hulu Planning IPO To Raise $300 Million

Online video rental service Hulu is gearing up to raise up to $300 million via IPO with the help of financial services provider Morgan Stanley.

According to news agency Reuters, the company is planning to raise anything between $200 million to $300 million from the IPO, which will put its value at around $2 billion.

Hulu is expected to file papers with the US Securities and Exchange Board by the end of this year, one Reuters source claimed.

The news of the IPO comes after Hulu announced plans to expand its service in the light of intense competition from rivals Netflix, Google and Amazon.

The service, which offers popular TV shows like Glee and Modern Family, was started by NBC, General Electrics, Walt Disney, News Corp. and equity firm Providence Equity Partners.

Hulu's efforts of expanding its services can be backed by the fact that the market for online video is expected to cross $16.1 billion by 2012.