Moscow. November 13. American video streaming service Hulu is considering selling its stake of Time Warner, as part of the deal Hulu may be valued at more than $5 billion, writes the newspaper the Wall Street Journal citing informed sources.
As part of the negotiations discussed the possibility that Time Warner will get Hulu in the proportion that corresponds to the current shares of the company’s owners – Walt Disney, 21st Century Fox and Comcast.
Each of the above three companies owns a third of Hulu shares, and to deal with Time Warner they will have to reduce their shareholding to 25%, the sources noted.
Time Warner owns movie Studio Warner Bros., produces television programs for all major broadcast and cable networks. The division of Turner Broadcasting comprises such channels as TNT, TBS, Cartoon Network and truTV.
The deal with Time Warner would allow Hulu to expand content and better compete with Netflix and Amazon.com writes the WSJ.
According to sources, under the terms being discussed, Time Warner will acquire a stake in Hulu and will also assume the obligation of providing the service content to a much greater extent than it buys now.
Interest Hulu to getting Time Warner as one of the owners is part of the “long-term strategy,” said one of the sources.