Hulu is reportedly seeking to sell a stake to Time Warner as part of a deal that would value the company at more than $5 billion (€4.6bn).
The companies have been in preliminary talks about Time Warner becoming astakeholder in Hulu alongside Disney, 21st Century Fox and Comcast. Each would have an equal stake of 25 per cent.
For Hulu, such a deal would help the company take on the likes of Amazon and Netflix. Time Warner would invest cash in Hulu and commit to license content to the streaming service beyond what it already has sold.