The as yet unnamed joint online video venture from News Corp and NBC, touted as a 'YouTube killer', has received $100m (£49.5m) in funding from Providence Equity Partners.
The VC firm will take a 10% stake in the company, which gives it a valuation of $1bn (£495m) - not bad for a site that's as yet unlaunched and thus unproven.
The new venture, known only by the working title 'New Site', aims to beat YouTube at the online video game by making use of the wealth of content available to the two media companies. It plans to show full episodes of TV shows and films, supported by advertising.
The site will be accepting user generated video content, though it has emphasised that it will prevent copyrighted material from being uploaded, and thus avoid some of YouTube's legal problems.
The new venture's distribution partners include Yahoo!, MSN, AOL and MySpace, which will ensure the site will have considerable reach. Content will be featured in an embedded player on these partner sites.
The cash injection will be used to buy and develop the site's technology. It is expected to launch sometime in the autumn.