Hulu the new Tumblr?

Yahoo Inc, isn't done buying yet

Hulu the new Tumblr for Yahoo

Yahoo Inc. has just forked over 1.1 billion dollars to be able to own personal blogging site Tumblr. And now they are waiting for their turn to make Hulu an offer they possible can’t refuse.

Yahoo isn’t the only one making bids, Hulu also received some great offers from private equity firms KKR&Co and Silver Lake Management. (These facts have been confirmed by people close to this matter.)

Silver Lake didn’t make the offer on their own they partnered up with William Morris Endeavor; the famous and powerful Hollywood talent agency. (The sources who have come forward with this information need to remain anonymous because this acquiring process is very hush hush.)

Brian Wieser, a Pivotal Research group analyst was very surprised that Yahoo is ready for another big buy. In his words: “Investors, seemed to react to the planned purchase of Tumblr with the thought that “at least that’s the last big deal for a while.”

Yahoo is on it’s way to compete with Google on a “cool, let’s show the young ones where it’s at” level. Hulu would be considered the nemesis of Youtube. (Which is owned by effortlessly cool, Google.)

According to Brian Wieser, the analyst, “it appeared Yahoo wanted to hitch itself to a popular consumer product in one of the fastest-growing areas of advertising — online video.” It would mean that Yahoo has another canvas to sell it’s advertisements on.

Hulu has some famous co-owners; like News Corp, Walt Disney Co. and Comcast Corp. We have to wait and see which of the seven suitors will gallop away in the sunset with this lucrative deal, and possible way to beat Google at it’s own game platform. The price is steep. Hulu has been asking for $1 billion. However the bids have not been disclosed.

Altogether, seven bidders are vying for one of the nation’s largest video websites. Earlier this week, Time Warner Cable Inc.DirecTV, the Chernin Group and Guggenheim Digital Media entered bids, according to the people familiar with the matter.

Hulu’s owners are seeking at least $1 billion from a sale.

Brian Weiser revealed the true reason why these companies are so impressed with Hulu: “The bulk of Hulu’s value must lie in the rights its network TV owners provide it with,” Wieser wrote in a research note Friday. ” Even without that programming, the site has built a successful brand and a consumer-friendly service that new owners could exploit.”

Some final financials to get an even clearer picture: Hulu has generated six hundred ninety five million dollar in revenue the past year, however the company decided not to publicize it’s profits publicly. Another impressive feat is that Hulu Plus, the paid service, has more than four million subscribers. What do you think? Is hulu worth it? Should they stay on their own for a while longer? Or is Yahoo a match made in heaven?

One of the downsides that Hulu does have in comparison to Youtube or even Tumblr for that matter is that Hulu is very restricted. If you live outside the US the company bans people from watching their content. It might be a good idea for both Yahoo and Hulu to straighten this issue out before money is invested and hearts are broken. Because Google is global, they don’t play in the kiddie pool. They go for the deep end and so should Yahoo!

By Georgina Pijttersen

source: la times, mrvpn

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