Yahoo is in a bidding war to acquire Hulu

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Looks like Yahoo’s CEO is shaking the company and going on a shopping spree. Earlier this month, Yahoo acquired Tumblr for $1.1 billion – and now, according to AllThingsD, the company is joining the bidding war for the popular online streaming website Hulu. There’s already a list of companies who have been bidding to buy Hulu including Peter Chernin (former News Corp president), DirecTV, and Time Warner Cable and few private equity firms (Guggenheim Digital Media, KKR, and Silver Lake Partners). Hulu’s advertising revenue is reportedly $695 million, an increase of 65% from last year.

It is important to note that Hulu is owned by three major player: NBCUniversal, Fox and Disney-ABC Group. They own 32, 36 and 32 percentage shares, respectively. It looks like these three shareholders doesn’t have a very clear picture of what they want to do with Hulu – if they should grow is as a subscription-based or as a free service with ad-based revenue model.

According to Yahoo’s latest quarterly earning report, Yahoo only had about $1.2 billion in cash, which means Hulu shouldn’t expect it to be a cash deal if they considers them a serious buyer. Yahoo has also been trying to buy DailyMotion, an online video hosting company based in France and owned by Orange. However, French government blocked the dead earlier this month. A startup gaming company called PlayerScale was bought by Yahoo earlier this month for an undisclosed amount.

We’ll keep you posted as we hear more details regarding Hulu’s future.

Update: According to All Things D, Yahoo is bidding somewhere between $600 million and $800 million to acquire Hulu.