Yahoo has been in preliminary talks with Hulu over a possible acquisition and Marissa Mayer is currently in informal meetings with the company about content deals and how Hulu would work with Yahoo.
The possibility of an acquisition could be very possible, according to AllThingsD, even though Hulu is wanted by more than one buyer. Former News Corp COO Peter Chernin would like to purchase the video streaming service, as would Ross Levinsohn, ex-intermin CEO of Yahoo.
Amazon is also another possible contender for the video streaming site, although we believe with Amazon’s efforts on Prime and LoveFilm already taking $2 billion a year in content deals, they will not want yet another big sinker.
Hulu is an odd company and the only way Yahoo would gain anything from acquiring is if it gains the content rights News Corp, Disney and Comcast.
Against Netflix this is a pretty large chunk of content and one Yahoo or Amazon could add to the collection. Amazon already has great amounts of content on its service and is starting to make its own content programming.
Yahoo will be doing this as well in the coming months, with six new series coming as webisodes to Yahoo, the company currently lacks a powerful platform to broadcast media, even though they have a lot of video viewers.
This would not be the first time Yahoo has been struck out the deal, with the DailyMotion $300 million deal stopped by French governments a few days ago.
Yahoo could have gained 75% share in the Orange Telecom business, but it was not to be and Yahoo has lost the deal. Hulu may be the next option for the company.
Sadly, this video rejection has went on for a long time at Yahoo, with the company failing to acquire YouTube in its early days, when it was sold to rival service Google.
Hulu may be a good investment, if Yahoo wins, but the question is will the content owners work with Yahoo to make an appealing and profitable service, to rival Netflix and Amazon Prime.