In a deal that could put Hulu in a stronger position to compete with streaming services such as Netflix and Amazon, The Wall Street Journal reports that Hulu is in talks to sell a stake in the company to Time Warner Inc.
The deal would value Hulu at more than $5 billion, the report notes, citing sources who are familiar with the situation.
“The companies have been in talks about Time Warner becoming an equal stakeholder in Hulu alongside Walt Disney Co., 21st Century Fox Inc. and Comcast Corp.,” WSJ reports. “Such a deal would likely involve the current owners, who own one-third each, drawing down their stakes to 25%. One of the people familiar with the discussions said the talks aren’t advanced.”
The move would help Hulu broaden its programming, the story notes.
“Under the terms that have been discussed, Time Warner would invest cash in Hulu and commit to license content to the streaming service beyond what it already has sold, the people said. Hulu’s interest in bringing Time Warner on board is about “long-term strategy,” one of the people said,” the story reports.
A deal with Time Warner would bring the Warner Bros. studio, which produces content for all major broadcast and cable networks, into the corporate family, along with the Turner Broadcasting cable channels, such as TNT, TBS, Cartoon Network and truTV, not to mention HBO, also owned by Time Warner.