Hulu Wants To Sell Minority Stake To Time Warner

Hulu Plus

Hulu is seeking to sell a minority stake in the company to Time Warner Inc., the deal would value the service at more than $5 billion, and would allow it to better compete with the likes of Netflix and Amazon.

The move would allow Time Warner to become an equal stakeholder in Hulu alongside Walt Disney Co., 21st Century Fox Inc. and Comcast Corp. Each of those companies own one-third of the company. The deal would likely draw down their stakes to 25% in order to make room for Time Warner.

Such a deal would likely involve the current owners, who own one-third each, drawing down their stakes to 25%.

Time Warner would help broaden Hulu’s content offerings by licensing new content to the service beyond a limited Time Warner selection that is already available through licensing.

Time Warner owns the Warner Bros. studio, and its Turner Broadcasting unit includes channels such as TNT, TBS, Cartoon Network and truTV. Time Warner also owns HBO.

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Hulu’s current owners have all said they are committed to increase the amount of content on the network. That increase includes more original Hulu series’.

Written by Peter Mondrose

Peter Mondrose

Peter Mondrose is the Editor-In-Chief at BusinessPundit. He received his degree in Economics in 1998 and a second degree in Journalism in 2004. He has served as a financial adviser, market trader, and freelance journalist for the last 11 years. When he's not investigating market conditions and reporting on workplace news, he can be found traveling with his wife, dog, and laptop. He can be reached at PeterMondrose@BusinessPundit.com or (929) 265-0240.