A 10 percent stake that is recently acquired by Time Warner Inc. from Hulu LLC has captured the limelight, being considered as a very bold move done by the world-renowned TV/movie producer company.
This proved that the popularity of the old school cable system is still very much alive amidst the increasing trend of internet streaming. Time Warner invested $583 million for the newly gained 10 per cent stake from the internet streaming company, Huly LLC.
When compared to the stakes of Hulu's major investors just like 21st Century Fox Inc., Walt Disney Co., and Comcast Corp's NBC Universal, it can easily be seen that it is way lower.
Time Warner opted to not be a major stakeholder in Hulu due to various regulatory concerns. This is said in a statement of a person who decided to remain anonymous.
Jeff Bewked, the Chief Executive Officer of Time Warner, said in a recent conference call last Wednesday that the company will not be participating actively in any major Hulu process.
The CEO reiterates that the newly gained 10 per cent stake without a position in the board makes everything safer in terms of governance. Bewkes, together with the company is settling for billion dollar investments to produce and develop original programs together with acquiring sports rights to retain the interest of the general public.
This squeezes the profits from AT&T Inc and Comcast Corp, the company's major rivals.
The company reports that the majority of the second quarter of the year gains from the HBO premium channel and Turner are mostly because of the affiliate revenue spearheaded by shows like the Game of Thrones and the NCAA Men's Basketball National Championship.
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