14 DAY TRIAL // Yahoo really wants to buy YouTube content provider Fullscreen, which gets over 3 billion hits each month. It looks like the company has put $250 million (€183.4 million) on the negotiations table for this purpose.
For the past couple of years, the Internet giant has been trying to become more relevant as a video content provider, purchasing company after company for this purpose, regardless of the type of content created by the startup.
Now, it looks like Yahoo has set eyes on a bigger fish than your average small-time startup – Fullscreen. Sky News reports that the move would give Yahoo access to a younger demographic, something that the company has been aiming for through its site redesign, the logo change and even the costly purchase of Tumblr.
Fullscreen has been around since 2011 when it was created in California by George Strompolos. The service considers itself to be the first media company for the connected generation. Fortunately, it has managed to become the largest independent YouTube network based on the number of unique visitors, getting over 3 billion hits every month and reaching some 100 million subscribers. The company has grown so much that it now has over 150 employees in several offices.
Reports indicate that Yahoo’s isn’t the only one trying to reel in big fish. In fact, private investment firm Chernin, one of Fullscreen’s shareholders, is also in the race, as well as AOL and Comcast. Chernin is understood to have the first right or purchase if other bidders don’t offer at least $300 million, which indicates that Yahoo may be low-balling it.
Acquiring Fullscreen would offer Yahoo the chance to monetize its ad business since videos are prime realty for this type of thing. Furthermore, it would guarantee that when it launches the YouTube rival it’s been working on for a while now, it will already have a big fan base. It would also likely leave YouTube without its biggest content creator, which would be a bonus for Yahoo.
Furthermore, the company could also use the feud between YouTube and many of the creators on its platform to lure in more of them to its own platform.
On the other hand, YouTube is preparing to launch a series of really cool features for those who produce content, including more access to stats of their own videos and channels, higher quality video support, and a way for fans to donate money.