Yahoo Planning To Take A Run On Hulu – After Its $1.1 Billion Acquisition Of Tumblr

Yahoo is planning to take a run on Hulu after its acquisition of Tumblr, a popular blogging site. The acquisition deal was completed with $1.1 billion and is expected to personalize the native ads into the content stream of Tumblr. The reason being, Marissa Mayor – the CEO of Yahoo has plan to monetize Tumblr. Tumblr is almost accommodated by about 300 million millions and most of them are young. Statistics have revealed that visitors spend a longer time in Tumblr than in Facebook and made Marissa show her interest.

It is also expected that Twitter and Facebook will get into this billion revenue league but they have to go a long way. Marissa Mayer has expressed her interest in Hulu because it has 4 million subscribers who pay $7.99 per month. There are more than 70,000 TV episodes. Hulu can be a great contribute in the revenue league and will put the video efforts of Yahoo. Hulu the video site is being currently owned by News Corp, Disney and Comcast. The year 2012 had brought $695 million of revenue from subscription fees and ads.

This revenue was far more than what was expected in 2012 which was about $420 millions. Search advertisement and display has brought revenue of $5 billion in 2012. Netflix as compared to Hulu has above 29 million subscribers and revenue of $1 billion in the first quarter of 2013. Last year was prosperous for Hulu because it had its 4 million subscriptions doubled up them. This made Yahoo get attracted towards its acquisition because this will bring Yahoo as the recurring stream of increasing revenue. It will also be full of credit card accounts for the customers who are expected to subscribe more for Yahoo services.

Yahoo is focused on building videos since several years. The video content of yahoo deals with CNBC Conde Nast, ABC News, Wenner media and NBC Sports. Besides these the original web stores was also added to it. Yahoo is one of the top sites for video consumption and this was revealed by comScore. Yahoo also tried to purchase a maximum number of stakes in the site named Dailymotion.

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