Yahoo has initiated talks on a possible acquisition of the online video website Hulu, as its chief executive officer Marissa Mayer met Hulu senior executives to understand more about the site.
Reports reveal that advertisers are willing to pay a premium to run commercials together with high-quality content, as Mayer seeks addition of videos across the internet firm’s product line-up.
Owned by News Corp, Walt Disney and Comcast, Hulu offers free replays of TV shows and movies on mobile devices, Web-connected TV sets and video-game consoles, while offering newer programming and earlier access by charging $8 per month.
Online retailer Amazon has also shown interest in acquiring Hulu, reports say.
With about four million paying subscribers and having served commercials from more than 1,000 advertisers in 2012, Hulu reported 65% rise in its revenue during 2012 to $695m, getting a boost from advertising and subscriptions.
Earlier, Yahoo planned to acquire a 75% stake in France Telecom video site Dailymotion, while the deal was reportedly blocked by French Industry Minister Arnaud Montebourg, who insisted on a 50-50 split.
