Yahoo! to Buy Hulu? - The UpStream

Yahoo! to Buy Hulu?

posted Sunday Aug 22, 2010 by Nicholas DiMeo

Yahoo! to Buy Hulu?

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.

Advertisement

Login to CommentWhat You're Saying

Be the first to comment!

We're live now - Join us!
PLUGHITZ Keyz

Email

Password

Forgot password? Recover here.
Not a member? Register now.
Blog Meets Brand Stats