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| Time Warner Acquires 10% Stake in Hulu | Time Warner Acquires 10% Stake in Hulu |
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| Time Warner announced on Wednesday that it had joined forces with several rival media companies to chart a new future for Hulu, acquiring a 10 percent stake in the streaming television service and committing programming for its new live TV offering. | Time Warner announced on Wednesday that it had joined forces with several rival media companies to chart a new future for Hulu, acquiring a 10 percent stake in the streaming television service and committing programming for its new live TV offering. |
| Time Warner paid $583 million in cash for the stake, valuing Hulu at $5.8 billion, an executive said during a conference call on Wednesday. The deal includes no representation on the board of Hulu, whose other corporate owners are 21st Century Fox, Comcast and the Walt Disney Company. | |
| The development comes as Hulu, which got its start primarily as a rerun service for broadcast shows, prepares a new offering of both live and recorded programming from a streamlined bundle of broadcast and cable channels. | The development comes as Hulu, which got its start primarily as a rerun service for broadcast shows, prepares a new offering of both live and recorded programming from a streamlined bundle of broadcast and cable channels. |
| The initiative is expected to start early next year. It is an attempt by the traditional entertainment companies to secure their place in television’s digital future, where streaming has become the norm and competition from deep-pocketed rivals like Netflix and Amazon has intensified. | The initiative is expected to start early next year. It is an attempt by the traditional entertainment companies to secure their place in television’s digital future, where streaming has become the norm and competition from deep-pocketed rivals like Netflix and Amazon has intensified. |
| “This investment from Time Warner marks a major step for Hulu as we continue to redefine television for both consumers and advertisers,” Mike Hopkins, Hulu’s chief executive, said in a statement. | “This investment from Time Warner marks a major step for Hulu as we continue to redefine television for both consumers and advertisers,” Mike Hopkins, Hulu’s chief executive, said in a statement. |
| On Wednesday, Time Warner said that its TNT, TBS, CNN and other Turner cable networks would be available live and on-demand on Hulu’s live-streaming service. | On Wednesday, Time Warner said that its TNT, TBS, CNN and other Turner cable networks would be available live and on-demand on Hulu’s live-streaming service. |
| Jeff Bewkes, chief executive of Time Warner, said in a statement that the Hulu deal was part of the company’s broader commitment to allowing viewers to watch the programming they wanted to watch, where and how they wanted to watch it. The company has made its offerings available across a range of new streaming services; it also operates stand-alone streaming services for some of its networks, including HBO. | Jeff Bewkes, chief executive of Time Warner, said in a statement that the Hulu deal was part of the company’s broader commitment to allowing viewers to watch the programming they wanted to watch, where and how they wanted to watch it. The company has made its offerings available across a range of new streaming services; it also operates stand-alone streaming services for some of its networks, including HBO. |
| “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,” Mr. Bewkes said. | “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,” Mr. Bewkes said. |
| The Hulu announcement was included as part of Time Warner’s second-quarter earnings release. The company reported net income of $951 million for the three months ended June 30, down 2 percent from the same period last year. Adjusted earnings per share were $1.29, beating Wall Street’s profit estimates of $1.16. | |
| Total revenue was down 5 percent in the quarter to $7 billion, with a decline at its Warner Brothers film and television studios offset by growth at its Turner and HBO units. |