US: Could Hulu sell stake to Time Warner?

Hulu, the streaming service owned by three media companies, is in talks to add Time Warner as a fourth investor, according to people with knowledge of the situation. The deal brought a large collection of high profile films to Hulu – including “Hunger Games: Catching Fire”, “World War Z” and “Transformers: Age of Extinction – which previously had been on Netflix”.

An influx of cash and content would help Hulu hold its ground against Netflix and Amazon in the streaming video competition.

An investment from Time Warner could accelerate Hulu’s effort to compete more directly with Netflix and Amazon’s streaming services.

Hulu has introduced an ad-free option to its service, but it costs $12 a month. “We know one of the benefits of an ecosystem like Netflix is its lack of advertising”, Howard Shimmel, chief research officer at Time Warner’s Turner Broadcasting, told Bloomberg. The rating is an average of the various different ratings given by analysts and brokers to Time Warner Incorporated and then averaged into one rating by a team of analysts at Zacks in Chicago, Illinois.

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