Report: Yahoo! Bids Between $600 and $800 Million For Hulu
Yahoo! is also in the race to acquire Hulu and sources with AllThingsD are reporting that they are putting in a bid at between $600 and $800 million for the video websites. The large price range is due to different circumstances including the length of licensing rights for content and how much control that the programming companies selling Hulu have over their content.
Yahoo! has been on an acquisition tear lately under CEO Marissa Mayer. In the month of May, Yahoo! acquired PlayerScale, Tumblr, Loki Studios, Milewise, GoPollGo, and Astrid. Yahoo! is also considering two other large acquisitions at the $150 million to $200 million range for a mobile and communications company.
This month Yahoo! attempted to get buy a large share in YouTube competitor, Dailymotion. That deal was blocked by the French government though.
Hulu has also received separate bids from private equity firms like KKR, Guggenheim Digital, and Silver Lake Partners. Time Warner Cable, DirecTV, and the Chernin Group have also made offers for the company. It will take some time for Hulu to fully assess the best offer and choose the winning bidder.
“Hulu is a very nice brand and technology, but the entire negotiation will be about the control and price of the content,” stated AllThingsD’s source. “It’s the only thing that matters.”This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry