Yahoo Wants Hulu Bad for the Revenue

Heidi Speare May 29, 2013 0

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Yahoo is in the game for buying Hulu again after it didn’t succeed few months ago with its intentions. This comes soon right after the CEO, Marissa Mayer, announced that the company is purchasing Tumblr. This company wasn’t bought very cheap and the whole price estimated at $1.1 billion. And as it seems, the company team isn’t satisfied yet and they are going strictly towards new bidding for the online video service called Hulu.

As we said, this is not a first attempt for purchasing Hulu but Yahoo isn’t the only company that is in the game. DirecTV, The Charnin Group and Time Warner Cable are also making their way through the path in order to place the biggest offer on the table. Hulu is owned by numerous companies and couple of weeks ago, some rumor was spread that they are seeking for new buyers.

With the acquisition of Tumblr, Yahoo without a doubt will bring some possibility for launching ads and plus gain a lot of visitors. Not very long ago, Marissa has announced that in the future, Yahoo will focus more on the mobile platforms. They have started with Tumblr and now the company is having a shot at Hulu to bring more strength at the streaming service. If you thought that this online streaming service is not on the same level like the bigger companies, accompanied by Yahoo, it will rise up for the challenge. As an independent company, Hulu has over 4 million subscribers who are paying $8 monthly. This online streaming service has plenty to offer, such as original programming or full TV episodes that are hitting the number of 70,000. This means that Yahoo will receive so much revenue from it that they are receiving from any other service. Added to this, the Yahoo’s team will work on it in order to make it more perfect and upgrade it with some other online streaming features, you can do the calculation all by yourself.

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Last year, this video site has received quite impressive numbers as a revenue generating $695 million. All this was gained from subscribers and ads. It’s a win-win situation for Yahoo and Hulu. The video streaming company will bring Yahoo already signed 4 million subscribers and big revenue from them and Yahoo supporters which were subscribers to other streaming platforms will transfer into Hulu.

Video is just another area where Yahoo has tried to make big progress over the past few years. Some companies are already in contract with Yahoo for bringing its content to it. As a matter of fact, Yahoo came highly ranked on the last comScore list for video streaming. It has 45 000 unique visitors who have the possibility to choose from 369,000 videos. Imagine how Hulu will be a great fit for the company with bringing its streaming content and viewers.

There is also a rumor that says Yahoo will offer up to $800 million for purchasing Hulu. Yahoo declined to comment but we will follow this possible acquisition with our eyes open and as soon as we receive information we will share it with you. Until then stay tuned.

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