Global media conglomerate Time Warner Inc. has purchased a 10% stake in streaming TV service Hulu, the companies announced this morning. The $583 million deal values nine-year-old Hulu — which is jointly owned by The Walt Disney Company, 21st Century Fox, and Comcast — at $5.8 billion, according to The New York Times.
As part of the deal, Time Warner’s Turner division — which comprises the cable networks TNT, TBS, CNN, Cartoon Network, and Adult Swim — will be part of Hulu’s forthcoming live TV streaming offer launching early next year. Announced by Hulu CEO Mike Hopkins at the NewFronts, the so-called skinny bundle of channels will reportedly cost $40 per month.
“With no set-up costs or installation,” according to a release, “Hulu’s new service will offer an intuitive and personalized interface and instant access to live and on-demand content across hundreds of living room and mobile devices.”
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Hulu will continue to offer its ad-supported and ad-free subscription services alongside the as-yet-unnamed bundle, according to the company, and remains focused on acquiring high-profile programming including Empire, Homeland, and Seinfeld. The company also behind original shows like The Mindy Project and 11.22.63.
“We’re excited to join Hulu’s other owners in launching a new consumer-friendly package featuring leading networks that will deliver more value to audiences and complement Hulu’s core SVOD offerings,” Time Warner chairman and CEO Jeff Bewkes said in a statement. Adds Hopkins: “This investment from Time Warner marks a major step for Hulu as we continue to redefine television for both consumers and advertisers.”
