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Time Warner Buys 10% Stake in Hulu as Cable TV Drives Profit

  • Media company said to have paid $583 million for stake
  • HBO, Turner sales gains help Time Warner top profit estimates
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Time Warner Invests $583 Million in 10% Hulu Stake

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Time Warner Inc. acquired a 10 percent stake in Hulu LLC, casting an eye to the future of TV even as its second-quarter results proved there’s still plenty of life in the traditional cable model.

Time Warner paid $583 million for its 10 percent stake in the web-streaming service, according to a person familiar with the matter. That’s less than the stakes of Hulu’s current investors 21st Century Fox Inc., Walt Disney Co. and Comcast Corp’s NBCUniversal. Time Warner decided against owning a larger stake in Hulu partly because of regulatory concerns, said the person, who declined to be identified discussing non-public information.