Time Warner has agreed to acquire a 10% stake in the premium streaming TV service Hulu.
Furthermore, Turner’s entertainment, sports, news and kids networks, including TNT, TBS, CNN, Cartoon Network, Adult Swim, truTV, Boomerang and Turner Classic Movies, will be available live and on-demand on Hulu’s new live-streaming service, expected to launch early next year.
According to WSJ, Time Warner will pay $583 million for the 10% stake, valuing Hulu at $5.8 billion. This is understood to be three times more than the company was worth in 2012.
Jeff Bewkes, chairman and CEO of Time Warner, said of the acquisition: “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.
“We’re also excited to join Hulu’s other owners in launching a new consumer-friendly package featuring leading networks that will deliver more value to audiences and complement Hulu’s core SVOD offerings. The inclusion of Turner’s networks in Hulu’s new streaming service furthers our efforts to allow consumers to engage with and enjoy our brands across a wide range of platforms and services.”
Mike Hopkins, CEO of Hulu, added: “This investment from Time Warner marks a major step for Hulu as we continue to redefine television for both consumers and advertisers. Our two companies have long enjoyed a productive relationship – which includes the availability of past seasons of popular Turner shows on our current SVOD offerings – and we are very proud that Turner’s networks will be included in our planned live streaming service.”
