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Time Warner Nabs 10% Stake in Hulu

Confirming rumors, Time Warner has announced it's buying a 10% stake in Hulu. Speaking on the company's earnings call, Time Warner confirmed that it paid $583 million in cash for the 10% stake, giving Hulu a new valuation of about $5.8 billion -- or about three times what it was worth just a few years ago. Time Warner will join Disney, 21st Century Fox and Comcast’s NBCUniversal as co-owners, the last of which being banned from making any major managerial decisions as per a condition of its 2011 acquisition of NBC Universal.

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"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," the company said of the deal.

Hulu's fatal flaw has historically been that as a product of the cable and broadcast industry itself, it hasn't worked very hard to disrupt the status quo. As a result, it has suffered from sometimes seeming like a glorified ad for traditional television.

There's some indications that's slowly changing, including a ramped up catalog, a new ad free version and placing fewer ads in the ad supported option. The company is also cooking up a new live subscription TV service that should go live later this year or early next.

Regardless, the significant cash infusion from a new Time Warner stake should give the company fuel for additional original programming efforts and exclusive content deals.
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tshirt
Premium Member
join:2004-07-11
Snohomish, WA
kudos:7
·Xfinity

tshirt

Premium Member

was this company held stock,,,,

...or did one or more existing partner reduce their share? Just a few years back it seem like some would be happy to bail out below their initial purchase price, if only somebody wanted to buy.
given the premium value announced, you'd think anyone who still has doubts would be the first to tender.
Hulu still has lots of directions to go as a service (remain the rerun channel/become the next Netflix/consolidate the partners online catalogs) but continues with it's laid back "some day we'll do some thing big" daydream.
will they move forward before they pass their pull date?

r81984
Fair and Balanced
Premium Member
join:2001-11-14
Katy, TX
·AT&T U-Verse

r81984

Premium Member

This should not be allowed.

It is interesting how the government is allowing this kind of monopolistic ownership to where the Content creators own all the viewing mediums. This should not be allowed.
All content creators should be banned from owning the transmission companies.

Hulu ownership:

Comcast (through NBCUniversal Television Group) (30%)
21st Century Fox (through Fox Broadcasting Company) (30%);
The Walt Disney Company (through Disney-ABC Television Group)(30%))
Time Warner (through Turner (10%))
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...brought to you by Carl's Jr.
Corporate
join:2014-10-04

Corporate

Member

Re: This should not be allowed.

said by r81984:

All content creators should be banned from owning the transmission companies.

Why? The more transmission companies that content creators own, the less transmission fights consumers will experience.

How exactly is content creators owning transmission companies a bad thing?

woody7
Premium Member
join:2000-10-13
Torrance, CA

woody7

Premium Member

Re: This should not be allowed.

your tag says it all....................................../
--
BlooMe
Corporate
join:2014-10-04

Corporate

Member

Re: This should not be allowed.

said by woody7:

your tag says it all....................................../

It was a genuine question.

bobjohnson
Premium Member
join:2007-02-03
Spartanburg, SC
·Charter
·T-Mobile US

bobjohnson to Corporate

Premium Member

to Corporate
said by Corporate:

said by r81984:

All content creators should be banned from owning the transmission companies.

Why? The more transmission companies that content creators own, the less transmission fights consumers will experience.

How exactly is content creators owning transmission companies a bad thing?

Because there are no longer any price controls on the content or the transmission and with the way these companies work that's a bad thing for customers and competing MSOs.
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Anon9e2a4
@2607:fcc8:cf80:2.x

Anon9e2a4

Anon

Re: This should not be allowed.

Well ABC/Disney and Time Warner doesn't own any delivery transmissions services outside of this platform. So yah. Anyway. For the content on Hulu its worth the price and it does compete.

bobjohnson
Premium Member
join:2007-02-03
Spartanburg, SC
·Charter
·T-Mobile US

bobjohnson

Premium Member

Re: This should not be allowed.

said by Anon9e2a4 :

Well ABC/Disney and Time Warner doesn't own any delivery transmissions services outside of this platform. So yah. Anyway. For the content on Hulu its worth the price and it does compete.

I was answering the broad question above which was simply "How exactly is content creators owning transmission companies a bad thing". In this case it's not a bad thing but in the case of a Comcast/NBC with the other combinations, Charter buys A&E and T buys ABC for example doesn't seem too promising in markets that they compete with other companies.
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Anon9e2a4
@2607:fcc8:cf80:2.x

Anon9e2a4

Anon

Re: This should not be allowed.

Sorry. It wasn't a direct reply to you. I don't see them owning Hulu as a bad thing. I'd rather pay them 12$ a month then $75 to TWC/Spectrum for less.

dongforce
come sail away
join:2008-09-26
Winnetka, IL
·AT&T U-Verse

dongforce to Anon9e2a4

Member

to Anon9e2a4
said by Anon9e2a4 :

Well ABC/Disney and Time Warner doesn't own any delivery transmissions services outside of this platform. So yah. Anyway. For the content on Hulu its worth the price and it does compete.

If we're counting OTA stations, there's quite a few ABC O&O stations around »en.wikipedia.org/wiki/AB ··· Stations

Anon9e2a4
@2607:fcc8:cf80:2.x

Anon9e2a4

Anon

Re: This should not be allowed.

That's not really a service. And it's free.

TestBoy
Premium Member
join:2009-10-13
Irmo, SC
kudos:1

TestBoy to Corporate

Premium Member

to Corporate
Jesus Pete Corporate.
Even you have to dislike monopolies...

Because the corporations love monopolies and will use that position to screw us all?

Anon9e2a4
@2607:fcc8:cf80:2.x

Anon9e2a4 to r81984

Anon

to r81984
What is illegal with it? The content companies built the platform and its open to anyone to use. It's cross usable with any platform- Roku, TV, STB, etc.

What is illegal and shouldn't have been allowed is ATT/DirecTV.
silbaco
Premium Member
join:2009-08-03
USA

silbaco to r81984

Premium Member

to r81984
In that case Netflix should be banned from making content as they are both the content creator and the transmission company.

I do get what you are saying but the effects of such a ban would not have the outcome you desire.

Anon52869
@charter.com

Anon52869 to r81984

Anon

to r81984
said by r81984:

It is interesting how the government is allowing this kind of monopolistic ownership to where the Content creators own all the viewing mediums. This should not be allowed.
All content creators should be banned from owning the transmission companies.

Hulu ownership:

Comcast (through NBCUniversal Television Group) (30%)
21st Century Fox (through Fox Broadcasting Company) (30%);
The Walt Disney Company (through Disney-ABC Television Group)(30%))
Time Warner (through Turner (10%))

Hulu is not a "transmission" company. I certainly hope by now you are not confusing TW with TWC.

r81984
Fair and Balanced
Premium Member
join:2001-11-14
Katy, TX
·AT&T U-Verse

r81984

Premium Member

Re: This should not be allowed.

You make no sense.
Hulu is a transmission company and not a content creator. People go to Hulu to see content. Just because you still have an ISP in between does not mean they are also not a transmission company.
You are confused.
--
...brought to you by Carl's Jr.

Packeteers
Premium Member
join:2005-06-18
Forest Hills, NY
kudos:1
·Time Warner Cable

Packeteers

Premium Member

pirate stream roku safety

many privately developed pirate channels work on roku - they basically intercept streams already out there distributed by others or geo relocated, and route them through a roku gui based channel. i worry that the more cabletv companies buy into hulu, the less likely those open architecture hobby channels roku hosts will feel safe to thrive roku's gui and hardware platform.

Anon83f2f
@2607:fcc8:cf80:2.x

Anon83f2f

Anon

Re: pirate stream roku safety

The only cable operator that owns anything if Hulu is Comcast.

Anonc5aa2
@2604:2d80:8034:0.x

Anonc5aa2

Anon

Any possible effect on CW deal?

Since Time Warner owns 50% of The CW, and now 10% of Hulu, does that mean there is some chance that CW's soon-to-expire deal with Hulu for current-season episodes of their shows might get renewed after all?

No?
I didn't think so.

Anon36182
@2607:fcc8:cf80:2.x

Anon36182

Anon

Re: Any possible effect on CW deal?

It could
silbaco
Premium Member
join:2009-08-03
USA

silbaco

Premium Member

Re: Any possible effect on CW deal?

I doubt it. Hulu definitely wanted to keep the CW and the fact that they couldn't means the CW must have wanted out so they could be free to make other plans. There are strong rumors that the CW is exploring their own subscription service.


How about ..