Time Warner Buys 10% of Hulu, Will Be Part of Skinny Bundle
Making a bet on the future of streaming video, Time Warner bought a 10 percent stake in Hulu, both companies announced today. Time Warner paid $583 million in an all-cash transaction, which gives Hulu a valuation of $5.8 billion. That's three times its valuation from 2012, the Wall Street Journal reports.
Time Warner is already a streaming pioneer, as it owns HBO and launched stand-alone streaming service HBO Now last year. Today's move shows it taking a strong stance on streaming as a hedge against pay TV erosion.
During its newfront presentation in May, Hulu confirmed that it will launch a streaming skinny bundle service, expected to go for $40 per month and debut in 2017. Part of today's news is that Time Warner channels CNN, TNT, TBS, Cartoon Network, Adult Swim, Boomerang, truTV, and Turner Classic Movies will be part of that service, providing both live and on-demand content.
“Our investment in Hulu underscores Time Warner’s commitment to supporting and developing new platforms for the delivery of high-quality content and great consumer experiences to audiences around the globe," said Jeff Bewkes, chairman and CEO of Time Warner, in a statement.
Hulu is jointly owned by The Walt Disney Company, 21st Century Fox, and Comcast—and, now, Time Warner.
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