Time Warner Buys 10% Stake in Hulu
August 03 2016 - 8:30AM
Dow Jones News
Time Warner Inc. said Wednesday that it agreed to buy a 10%
stake in streaming-TV service Hulu, a move that comes as
traditional cable companies struggle with viewers increasingly cut
the cord.
In addition, Time Warner also reported better-than-expected
second-quarter earnings and lifted its profit forecast for the
year.
Time Warner didn't disclose the terms of the Hulu deal. In
November, The Wall Street Journal reported talks about Time Warner
becoming an equal stakeholder in Hulu alongside Walt Disney Co.,
21st Century Fox Inc. and Comcast Corp. The Journal reported then
that such a deal would likely involve the current owners, who own
one-third each, drawing down their stakes to 25%.
"The investment in Hulu reflects Time Warner's continued
commitment to supporting innovative digital services that allow
consumers to access high-quality content however they want it
across a variety of platforms," Time Warner said Wednesday.
The New York-based Time Warner—owner of the Warner Bros. film
studio and cable channels HBO, TNT and CNN—has been grappling with
subscriber declines as more people cut the cable cord and opt for
online streaming. In an effort to stem the tide, Time Warner last
year launched HBO Now, its stand-alone streaming service for the
channel featuring popular shows such as Game of Thrones.
21st Century Fox and News Corp, which owns The Wall Street
Journal, share common ownership.
Write to Lisa Beilfuss at lisa.beilfuss@wsj.com
(END) Dow Jones Newswires
August 03, 2016 08:15 ET (12:15 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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