Yahoo! Rumoured To Be After Video Sharing Site Hulu In $600m Deal

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Yahoo! is now looking to purchase Hulu in a deal worth a reported $600m according to new reports.

Such a move from the search engine firm could be seen as an alternative to its failed bid to snap up a similar video sharing site, Daily Motion.

AllThingsD claims sources close to the matter have informed them of a major bid from Yahoo! into the site owned by Disney, News Corporation and Comcast. However, it will have to fight off  stiff competition from a number of firms including the Chernin Group, Time Warner Cable and DirecTV among others if it wants to win the bidding war.

The value of the deal could actually fluctuate between $600-800m, with different figures outlined as part of many different variables in the purchase, although sources informed AllThingsD the site's owners are holding out for as much as $1bn.

The video site had previously been on the market in 2011 at a price of $2bn, but many bidders found that price a little too high, so the significantly lower $1bn figure could go some way in tempting previously uninterested bidders.

Only last week, Yahoo! purchased the micro-blogging site Tumblr in a $1.1bn deal, the biggest acquisition since Marissa Mayer took over the reins at the firm just under a year ago.

The firm has also been connected with two other major deals in the $150-200m range, for a mobile and communications company, in a sign that Ms Mayer is not content to rest on her laurels following the Tumblr purchase.

Unlike YouTube, which only recently started flaunting with the idea of a paid subscription service, Hulu already has such an offering in place.

It also features an advertising business, featuring personalised and full screen ads, so Yahoo! could certainly generate extra money from display advertising as well.

Furthermore, such a deal would give the firm a route into an increasingly prominent content marketing industry. With Google owned YouTube already used by more than a billion people, Yahoo! could be looking to challenge its search engine rival on a new battlefield.

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