Hulu is stepping up its efforts to compete with rivals Netflix and Amazon by selling a stake to Time Warner in a deal that would value the streaming service at more than $5bn.
Talks are still at an early stage according the Wall Street Journal, however it has been reported that Hulu wants Time Warner to become an equal stakeholder in the company alongside current owners Walt Disney, 21st Century Fox and Comcast. The current owners own one third each and so in order for Time Warner to come on board they would have to reduce their stakes to 25 per cent.
If the deal goes ahead Hulu would be able to significantly broaden its content offerings and better compete in the crowded on-demand and streaming market. It is understood that discussions have centred on Time Warner investing money in the service and licensing content beyond what it has already sold.
This could see a number of programmes from Time Warner's Warner Bros. studio from channels such as TNT, TBS, Cartoon Network and truTV.
Over the past 18 months, Hulu has invested heavily in building its library and acquiring origional content, increased its content outlays from $600m in 2014 to $1.5bn this year.