Yahoo! may be making a move and purchasing a "considerable" stake in Hulu if the website decides to pursue an initial public offering, according to analyst group Stifel Nicolaus & Co. Hulu, who is owned by three of the biggest US broadcast networks, is preparing a share sale as early as this year, and they are predicted to value the company at over $2 billion.
Is Yahoo! in a position to do this? Check after the break for more insight on this possible purchase.
Yahoo!, who is the owner of the second-most popular US Internet search engine, could consider acquiring a stake in Hulu in order to align themselves in the entertainment market and to put them as a "must-buy" for advertisers, analyst Jordan Rohan with Stifel Nicolaus said this week. Hulu's estimating $200 million in revenue this year and that "implies superior monetization" compared to Google's YouTube, the analyst wrote.
Such an acquisition could be a very smart strategic move as the Yahoo sales force would be able to cross-sell Hulu inventory with parts of Yahoo’s own content initiative.
Founded in 2007 by General Electric Co.'s NBC Universal and News Corp.'s Fox, Hulu started as an advertising-supported service for viewers to watch previously broadcast TV shows for free online. Now the venture, also owned by Walt Disney Co.'s ABC and Providence Equity Partners Inc., is starting a subscription service.
We're filled in on everything Yahoo! and if we see any statement from Yahoo! about this possible acquisition, we'll be the first to let everyone know.