Friday, 13 November 2015 17:01
Thursday reported a flurry of activities in multimedia sector as Netflix reported a share loss of nearly 4%, while rival Hulu looks to sell a stake to Time Warner.
Hulu was reported to be in talks with Time Warner Inc. in a deal that would be valued at $ 5-$ 6 billion. It would enable the company to compete better with rivals Netflix Inc. and Amazon.
Hulu is currently owned by three equal stakeholders; Walt Disney, 21st Century Fox Inc. and Comcast Corp. A deal with Time Warner would mean the share of existing stakeholders would reduce to 25% while Time Warner would be a new stakeholder with 25%.
Wall Street Journal reported that the deal, involving a cash investment and content licensing, would make Time Warner an equal stakeholder in the Internet streaming service. The deal would value Hulu at anywhere from $ 5 billion to $ 6 billion, though it’s not clear how much Time Warner would invest.
Netflix meanwhile looks to bounce back from 4% share loss on Thursday, as it saw a positive year and aims for a brighter year ahead.
MarketWatch reported shares of Netflix to have been more than doubled so far this year, up 123%, outperforming the S&P 500 index, which is down 0.63%.
