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Yahoo Reportedly Bids on Hulu

Hulu's owners were hoping for $2B for it back in 2011; Yahoo reportedly has only bid somewhere between $600M and $800M

Yahoo Friday reportedly bid somewhere between $600 million and $800 million for the Hulu video streaming site after it’s just laid out $1.1 billion in cash for Tumblr.

The offer’s wide range can supposed be attributed to the various proposals it’s put on the table, including the length of the licensing rights for content and how much control the programming companies selling Hulu have over their media.

Hulu, which has four million paying subscribers and commercials from more than a thousand advertisers, brought in $695 million last year.

Yahoo under new CEO Marissa Mayer is also supposedly thinking about buying two other firms in the $150 million-$200 million bracket each a mobile and a communications company.

All Things Digital, which is as tightasthis with Yahoo, broke the news.

Hulu is owned by News Corp, Disney and Comcast (which doesn’t have any management rights left thanks to the federal government).

They were hoping for $2 billion for the property back in 2011, and pulled it off the market when they realized they weren’t going to get that kind of money.

They have differences over Hulu’s business model: ads versus subscriptions.

The French government recently nixed a Yahoo deal to buy 75% of French video site Dailymotion for $300 million.

VentureBeat says the other firms interested in Hulu include at least Amazon, KKR, Guggenheim Digital and Silver Lake Partners (in conjunction with Hollywood talent agency William Morris Endeavor); Time Warner Cable; DirecTV; and the Chernin Group, an instrument of former News Corp president Peter Chernin, who offered a starting bid of $500 million last month.

The owners are now reportedly looking for $1 billion or better.

More Stories By Maureen O'Gara

Maureen O'Gara the most read technology reporter for the past 20 years, is the Cloud Computing and Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at)sys-con.com or paperboy(at)g2news.com, and by phone at 516 759-7025. Twitter: @MaureenOGara

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