Hulu's owners discussed to sell a stake in their streaming service unit to Time Warner Cable. According to a person with knowledge of the process, the move was taken as the company seeks to create stronger competitor to Netflix Inc.
While not imminent, an agreement could be reached in two weeks' time. This was according to sources who asked not to be named as the discussions were held private. Time Warner Cable previously proposed acquisition for 25% stake in the company. Walt Disney Co, 21st Century Fox Inc and NBCUniversal said today that they have cancelled the planned sale of the service.
The talks included a US$750 million commitment from the owners of Hulu to back the online firm's campaign of attracting subscribers. This would help in becoming a strong competitor against Netflix that has around 34 million paying customers. The proceeds of the sale would help Hulu purchase programming, develop technology, market its service and attract employees to the firm. This was according to Disney Chairman and CEO Robert Iger said during an interview today with Bloomberg TV.
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