Yahoo have been really busy buying up video chat apps, photo sharing sites, and even the $1.1bn valued Tumblr. While the ink may not be dry on the Tumblr acquisition yet Yahoo are not resting on their laurels having place a bid for video streaming website Hulu. While there were no definite figures announced, analysts have said that Yahoo may have to pay as much as $800m in order to land the site.
Under new boss Marissa Mayer, the acquisition team have certainly had their work cutout and this would be the 13th purchase since Mayer took over at the helm. While many of the previous acquisitions have been instantly shut down it seems unlikely that this will be the case with Hulu.
Hulu is a video streaming service. At the end of 2012 it was reported that Hulu had doubled its subscriber base to 3 million while revenue rose 65% to $695m. The company has more than 50,000 hours of video available to users but Yahoo may find some challenges in the shape of securing licensing deals with major publishers. The value of Hulu lies almost entirely in these deals and if extensions and new deals can’t be secured then $600m will seem an awful lot of money.
Yahoo is in the process of rebranding and remodelling. Marissa Mayer has been busy acquiring a number of brands and services in order to help them become a force in the video, social, and mobile arenas. Hulu looks set to be one of the biggest acquisitions of Mayer’s rule, assuming the deal goes through.