Time Warner Inc. has reached a deal with Hulu that will see the media conglomerate acquire a 10 percent stake in the video-streaming service.
The Wall Street Journal reports that Time Warner shelled out cash in the amount of $583 million for their new found partnership. This recent consensus has increased the worth of Hulu to an estimated $5.8 billion.
“This investment from Time Warner marks a major step for Hulu as we continue to redefine television for both consumers and advertisers,” said Mike Hopkins, Hulu’s chief executive, in a statement.
Time Warner chairman and CEO Jeff Bewkes also released a statement in which he stated that "The inclusion of Turner's networks in Hulu's new streaming service furthers our efforts to allow consumers to engage with and enjoy our brands across a wide range of platforms and services."
The new partnership will allow TNT, TBS, CNN, truTV, Cartoon Network, Boomerang, Adult Swim and TCM to be available for live-streaming on Hulu next year.
This deal will not enable Time Warner's aforementioned networks be accessible on the $7.99 monthly package. Instead, each will see the light of day in the near future on Hulu's $40 monthly virtual cable-TV service.
Time Warner Inc. joins other Hulu stakeholders that include Disney, Comcast and 21st Century Fox.