Hulu just landed an investment deal that will make it even more valuable as a business and among subscribers.

Time Warner announced on Wednesday that it agreed to buy a 10 percent stake in Hulu for $583 million.

The deal now boosts Hulu's valuation to about $5.8 billion, triple of what the company was worth just four years ago.

It appears that Time Warner didn't have to think twice about handing over the cash to acquire a stake in the streaming company since it reported to having better second quarter earnings than expected.

It is also a smart business move as cord-cutting continues to be a trend among viewers.

The company already has content distribution deals with SVOD services, including Hulu, Netflix and Amazon Prime, and owns its own services, HBO Now and DramaFever. However, now, Time Warner can make some money off of the future success of Hulu as it continues to grow.

"Our investment in Hulu underscores Time Warner's commitment to supporting and developing new platforms for the delivery of high-quality content and great consumer experiences to audiences around the globe," Time Warner chairman and CEO Jeff Bewkes said in a press release.

The deal means that more series and movies that air on Time Warner-owned channels will be available for streaming. However, these will be added to Hulu's new live streaming service that is expected to launch next year and not the existing Hulu platform.

The new streaming service is said to be one that broadcasts live TV over the internet, an option for those who still want to watch live TV but don't want to pay for a cable subscription.

This Time Warner deal means the new service will include the following channels: TNT, TBS, CNN, Cartoon Network, Adult Swim, truTV, Boomerang and Turner Classic Movies.

Understandably so, HBO will not be included in the content lineup for the new streaming service.

"This investment from Time Warner marks a major step for Hulu as we continue to redefine television for both consumers and advertisers," Hulu CEO Mike Hopkins said. "Our two companies have long enjoyed a productive relationship — which includes the availability of past seasons of popular Turner shows on our current SVOD offerings — and we are very proud that Turner's networks will be included in our planned live streaming service."

With stake in the company, Time Warner now joins other media companies that partially own Hulu, which includes Disney, 21st Century Fox and Comcast.

Source: Time Warner