Previous Story
Time Warner taking 10 percent stake in Hulu
Posted On Aug 04 2016
Comment: Off
The investment in Hulu reflects Time Warner’s continued commitment to supporting innovative digital services that allow consumers to access high-quality content however they want it across a variety of platforms. FOXA, +0.30% FOX, -0.37% and Comcast Corp. Time Warner has not only beaten the expectations but has also raised its guidance for the next quarter. It also offers movies and Hulu originals such as “The Mindy Project”, “Difficult People”, “The Path”, “11.22.63” and “Casual”. For Comcast, there is the added risk of a loss of subscribers.
This deal will not enable Time Warner’s aforementioned networks be accessible on the $7.99 monthly package.
Hulu’s new executive hires include Ehren Schlue from Amazon.com Inc and Karen Van Kirk from Intuit Inc, Smith said. Time Warner Inc. reportedly limited its investment, and settled for a non-controlling interest in the SVOD company, to limit regulatory concerns. In a separate affiliate deal announced Wednesday, Hulu will carry Time Warner’s channels in its upcoming live TV service. But there have been “conversations about HBO gaining carriage on Hulu and talks are expected to continue”.
The investment will give Hulu “more resources to offer consumers more shows and more choices, fostering competition and innovation” among pay-TV and online video services, Bewkes said.
The shares rose 3.6 percent to $78.50 at 7:45 a.m. before the official market open Wednesday.
For the three months June 30, Time Warner Inc. earned $952 million, or $1.20 per share.
The company attributed the revenue decline to weakness at Warner Bros., offset by growth at Turner and HBO. But HBO’s content and other revenue was down 14% as domestic licensing revenue fell. The company’s Warner Brothers film and TV production unit saw revenue of $2.7 billion, a 19% plunge. TWX are up about 2.7% on Wednesday following the company’s second-quarter earnings announcement.
The company boosted its full-year adjusted profit outlook to a range of $5.35 to $5.45 per share. The earnings per share, on the other hand, was comprehensively ahead of the consensus estimate of $1.16 and amounted to $1.29.
