Cable Giant Time Warner to Acquire Stake in Netflix Competitor Hulu
Time Warner is buying a stake in Hulu. The cable giant is acquiring 10% of the video streaming service for $583 million, Time Warner’s chief financial officer revealed during the company’s earnings call this morning.
This expands Time Warner’s content distribution and helps the company reach a younger audience that is less interested in subscribing to traditional cable. Walt Disney Co, 21st Century Fox, and Comcast are also shareholders in Hulu.
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Time Warner’s quarterly profit hovers in the range of $1 billion, but Hulu, sources suggest, is not profitable. Even so, the cable giant raised its financial forecast for the year based on optimism surrounding the acquisition, and investors agree: the company’s stock is up 4%.
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