Yahoo considers buying Hulu as Marissa Mayer continues to shop for an answer

Ever since Marissa Mayer took the helm at Yahoo, the company has been trying to grow and reclaim its glory days through buyouts.  One of the latest, and perhaps the biggest deal under Mayer’s reign, might be Hulu, a prominent video platform that has seen better days.

Sources close to the matter are reporting that Mayer is meeting with Hulu Execs, and is perhaps in the preliminary stages of deciding whether or not Yahoo should make a formal bid for the video service.  According to comScore, Hulu was in the top 10 VoD sites last year, but dropped off the radar earlier this year.

Yahoo has reportedly been trying to solidify its presence in the internet video streaming arena, as evident by the company’s failed attempt to purchase a majority stake in France Telecom’s Dailymotion. 

 Yahoo considers buying Hulu as Marissa Mayer continues to shop for an answer

“I think video is really important… video is something that we’re all innately designed and born to experience, everyone is born being able to watch and hear,” said Mayer in a recent interview with Wired.  “Video is just this amazing format.”

A complete buyout of Hulu is believed by some analysts as unlikely, but perhaps a huge investment by Yahoo might be the most beneficial path for both sides.  The compromise being, current Hulu backers will have a new partner to split the bill with, and Yahoo can bolster its content distribution to gain more consumer appeal. 

Hulu would be a big bet if Yahoo decides to write a check, and some are even suggesting that Mayer should consider smaller VOD companies as building blocks instead of picking up a big purchase all at once.  Regardless of what Yahoo is going to do, there’s a clear indication that Mayer intends to attract the internet community back to the Yahoo brand through interactivity as well as mobility—an innate part of Mayer’s Google upbringing.

Source: AllThingsD