Former Disney chairman raises $1bn for Netflix-style startup

By City A.M.

THE FORMER Disney chairman who produced films such as The Lion King, The Little Mermaid and Aladdin scored a total of $1bn (£772m) for his Netflix and Youtube rival startup, in a seed funding round that closed yesterday.

Led by Jeffrey Katzenberg alongside former Hewlett Packard and Ebay chief executive Meg Whitman, the startup temporarily known as NewTV will be a mobile only streaming service for 10 to 15 minute videos with the high quality production value of a major network.

The raise has been backed by most of the major film studios in Hollywood, including 21st Century Fox, Disney, Lionsgate, Metro Goldwyn Meyer. It also received funding from Alibaba, as well as Goldman Sachs, JP Morgan Chase, Liberty Global and Madrone Capital.

This article provided by NewsEdge.