Thursday 30 May 2013

Yahoo trying to acquire video streaming service Hulu!



After the failure of redemption Dailymotion, now Yahoo! tries to get VOD platform Hulu. In 2006, Yahoo! tried to buy YouTube in vain. It was finally sold for 1.6 billion dollars, a gold price that Google snatched it from the hands of his rival one of the world's video platform. In 2013, shortly after the arrival of Marissa Mayer, the portal returns to the load by trying to acquire 75% of Dailymotion for € 300 million. Once again it was a failure. This time it is the French Govt. who opposed to sell it to the U.S Company. Barely a month later, Yahoo! launched once more try in his eternal quest for video Grail. According to Kara Swisher of AllthingsD, Yahoo! would be willing to make an offer between 600 and 800 million dollars, but it calms the media enthusiasm by saying that it is unlikely that Hulu accepts an offer below to a billion dollars.

 It is another failure to Yahoo on the arduous road to the VOD platform? Unlike Dailymotion, Hulu is a VOD platform. The acquisition would be perfectly consistent because Yahoo! (through Yahoo Screen), as well as Hulu have recently redeployed to the production of content. Since 2010, Hulu produced web series and other video content. Yahoo! is itself has started already for example "Electric City," a series produced by Tom Hanks." By the acquisition Hulu could bring a unique expertise to Yahoo! in the field of content monetization, creating obvious synergies with Yahoo screen in countries other than the U.S. or Japan the only regions where Hulu is available. Hulu is a U.S. platform happens best monetize video content. Hulu is a pioneer in advertising. It was Hulu who introduced the "ad selector", which allows users to choose which view advertising before playing the video. ". Hulu has given best Results and reward to this technology. In 2011, Hulu exuded a turnover of $ 420 million to 2 million subscribers in 2012 alone; the turnover has soared to $ 700 million to 4 million subscribers. If the acquisition is consistent with the Yahoo! video, it does not necessarily take place in the most strategic time.

 Indeed, the company led by ambitious Marissa Mayer embarked on a frenzied acquisition strategy, acquiring all goes startups that sometimes do not emerge from sales. This is not the ideal time; Yahoo has squandered its $ 1.2 billion cash to buy Tumblr. However, Yahoo! will soon release more reserves. Remember that owns 24% of Alibaba will soon go public and potentially be enhanced up to 100 billion dollars. Finally, all these arguments are highly speculative since Yahoo! is competing with big players like Time Warner Cable, DirecTV, Guggenheim Digital Chernin Group, KKR & Co. and an alliance of Silver Lake Management and William Morris Endeavor Entertainment. Yahoo! believes that Time Warner Cable is the most serious competitor, "Actors like NBC, Walt Disney and News Corp., which currently have Hulu might be afraid to give a pure internet player that could cannibalize in creating a platform the size of Netflix. Indeed, these groups develop their own similar jobs and they might find it reassuring to sell Hulu to a player of their own ecosystem". Then the question of the amount of the offer by Yahoo! obviously come into play is unlikely that Hulu will agree to be settling at an amount lower than the recent acquisitions that took place in Silicon Valley. The acquisition of Tumblr 1.

1 billion may be taken as a standard. However, Yahoo! could still play on Hulu major flaw that is it’s difficult to enter into long-term contracts with rights holders that they commit several years to continuously feed the platform. In 2011, rumors had circulated a potential buyout of Hulu to $ 2 billion by Yahoo!, but it would have changed its mind, Hulu is unable to guarantee the delivery of content over four years. In the event of a failure of the acquisition Yahoo! will refocus on organic growth strategy, including developing Yahoo screen and producing their own video content. Yahoo! has the means to develop original and exclusive offers autonomous and do not depend exclusively on acquisitions.

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