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Yahoo Joins Growing List of Bidders For Hulu
An anonymous reader writes "It's reported that Yahoo has formally put in a bid to buy Hulu only a week after adding Tumblr to the family. From the article: 'Yahoo just spent $1.1 billion of its cash hoard to acquire Tumblr, a blogging site with 300 million mostly young-ish visitors and 24 billion minutes of usage per month. Yahoo CEO Marissa Mayer's team can slap a lot of tasteful, personalized native ads into the Tumblr content streams to monetize the fast growing site. It's the same way that Facebook and Twitter hope to get into the tens of billions in revenue league, but it's a long and winding road. Now Yahoo is taking a run at Hulu, with its 4 million subscribers paying $7.99 per month, original programming , and more than 70,000 full TV episodes. Hulu could immediately put Yahoo's video efforts and revenue in a different league.'"
Yahoo spent 1.1billion of 1.2billion in cash reserves to buy Tumblr. Where is this $200 million coming from?
Also, 300million seems low considering Hulu actually has decent revenue compared to Yahoo's other acquisitions which have lower revenue and were purchased for far more. E.g. Tumblr had $13 million in revenue last year, yet was purchased for 1.1billion; Hulu had $695 million in revenue the same year, 53 times that of Tumblr. Buying it for 1/4 the price would be a steal.
Hopefully, Hulu will refuse to be bought by a company so irresponsible with its money, or for an amount less than half of its yearly revenue.