Time Warner is buying 10 percent of Hulu for around $600 million, and will join Hulu’s new pay TV service
After months of talks, #TimeWarner is buying a chunk of #Hulu, the web TV service. The deal means Time Warner will be partners with existing owners #Disney, 21st Century Fox and #Comcast ’s NBCUniversal*, and that Time Warner’s channels like Turner and CNN will be part of a new pay TV service Hulu wants to launch next year. Time Warner says it is buying a 10 percent stake in Hulu; a person familiar with the deal says it is putting in around $580 million (Update: Make that $583 million, per Time Warner’s CFO, during the company’s earnings call this morning) for that stake, which values the entire company at $5.8 billion. Hulu, which industry sources estimate is losing hundreds of millions of dollars a year, had originally wanted Time Warner to buy as much as 25 percent of the company.