Time Warner is taking a 10 percent stake in streaming television service Hulu. (Dan Goodman/AP)
Time Warner buys 10% stake in Hulu

Time Warner has become the latest media company to invest in the streaming service Hulu.

The move could boost the viability of an online television service that Hulu is expected to launch next year as an alternative to cable TV.

Time Warner, which owns HBO, TNT and TBS, took a 10 percent stake in Hulu for $583 million, another step blurring the lines separating cable TV from Internet video services. Hulu’s other equity stakeholders include Walt Disney, 21st Century Fox and Comcast’s NBC­Universal — the parent companies of ABC, Fox and NBC.

Time Warner said its networks will be available as part of Hulu’s upcoming online TV service. But the companies did not specify which Time Warner shows will be added to Hulu’s current offerings of on-demand shows.

It’s also not known how HBO will fit in with either offering. Hulu already has a deal with CBS to carry Showtime for an extra fee, while HBO has a similar arrangement with an online TV service called Sling TV.

— Associated Press

Freddie Mac reports drop in earnings

Mortgage giant Freddie Mac reported net income of $993 million for the second quarter, down sharply from the same period of 2015.

The company said Tuesday that its income from fees received from lenders for guaranteeing mortgages increased in the April-through-June period. But it said it sustained losses on investments because of a decline in interest rates.

Freddie, based in McLean, Va., will pay a dividend of $933 million to the U.S. Treasury next month. Freddie will have paid $99.1 billion in dividends, exceeding its government bailout of $71 billion.

— Associated Press

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