Yahoo reportedly offers up to $800 million to acquire Hulu

By on May 27, 2013, 9:30 AM

Yahoo seems to have some surprisingly deep pockets ready for making acquisitions, as the company reportedly offered anywhere from $600 to $800 million to purchase online streaming platform Hulu. The report comes from All Things D, after revealing Yahoo's intentions to purchase the site earlier in May.

The offer comes hot on the heels of Yahoo committing to a $1.1 billion acquisition of blogging platform Tumblr. In spite of that large investment, it's clear that the company is looking to further expand its offerings. Video is an area it has always lacked, and getting Hulu in its portfolio would rectify that situation. It already attempted to purchase DailyMotion last month, but French officials shot that deal down.

The final price will vary based on licensing specifics and the amount of control its current owners have over the programing. Of course, this same price variation is likely to apply to the other companies interested in acquiring Hulu. According to the report, these include three private equity firms, Time Warner Cable, DirecTV, and the Chernin Group. 

Sources close to the situation claim that it is unlikely any offer under $1 billion will be accepted, but it's pretty standard for companies to start with lower offers and negotiate up from there. 

This is not the first time Hulu has been available. Initially it was on the market for closer to $2 billion, but no offers in that range came in. The site is reportedly much closer to actually selling on this occasion.




User Comments: 10

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JC713 JC713 said:

30 million for Sumly, 1 billion for Tumblr, then this? Yahoo is really on a spending streak. They are gonna ruin tumblr by flooding it with Ads, they will do the same with poor Hulu.

Skidmarksdeluxe Skidmarksdeluxe said:

This Marissa chick seems like a real go-getter but why would I use Yahoo now that I've got used to using Google? Maybe they'll make a case for themselves one day. These OTT sites such as Hulu are really not my thing.

9Nails, TechSpot Paladin, said:

I think $800 Million for Hulu sounds awfully low. Is Hulu unable to turn a profit while Sumly and Tumbler were?

treeski treeski said:

I think $800 Million for Hulu sounds awfully low. Is Hulu unable to turn a profit while Sumly and Tumbler were?

Keep in mind Hulu is not a global service, which might play into its lower value.

RzmmDX said:

How is it that Yahoo still has such deep pockets...

Google and Apple must have a secret island where they stash all their cash. Or an island made out of cash...

But as long as they don't change the subscription model and add in more content. Sure.

spydercanopus spydercanopus said:

Hulu is worth more than tumblr! I hope Yahoo doesn't buy Hulu... dislike yahoo.

spydercanopus spydercanopus said:

Google and Apple must have a secret island where they stash all their cash. Or an island made out of cash...

It's called the Cayman Islands.

Duckula22 Duckula22 said:

This video is not available in your location. 'nuff said.

avoidz avoidz said:

How is it that Yahoo still has such deep pockets...

Google and Apple must have a secret island where they stash all their cash. Or an island made out of cash...

But as long as they don't change the subscription model and add in more content. Sure.

You mean, erm, Ireland...

avoidz avoidz said:

At least Yahoo! might get Hulu of its arse and make it available worldwide.

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