Boston, MA 06/30/2014 (wallstreetpr) – Yahoo! Inc. (NASDAQ:YHOO) started bidding for approximately $250 million in order to acquire Fullscreen, which is responsible for creation of YouTube channel content. Through this acquisition, Yahoo looks forward to expansion of the reach towards younger consumers. Fullscreen generates over 3 billion monthly views on the YouTube channel of Google. The company was formed in the year 2011 by a former executive of Google, George Strompolos.
Others in the Competition
In the bid to acquire a company with such a massive reach on monthly basis, Yahoo is also facing stringent competition from Chernin, a Private Investment Company. In this race of potential purchase, Comcast Ventures and AOL are also running for the bid.
Position of the biggest competitor of Yahoo in the bid, Chernin
The advantage that Chernin enjoys is that already exists on the shareholder list of the Fullscreen, after it bought stake in June 2013 along with WPP and Comcast Ventures, the largest advertising group of the world. It is believed that Chernin, which is owned and operated by News Corp executive Peter Chernin, will have the right to acquire Fullscreen at a price which was formerly agreed upon, provided that other bidders fail to offer a minimum of $300 million.
Yahoo’s Challenge to Google
It is expected that Fullscreen may not be ready for this sale to Yahoo! Inc. (NASDAQ:YHOO) because in the recent past, the company had discussed about its plans of investing 10 million on a few new YouTube series and so, it might remain hesitant to leave Google for Yahoo. Nevertheless, Yahoo too has given a full-swing challenge to Google by bringing on the podium, a new video service, in the summers, which offers interesting content creators from YouTube only.
Yahoo! Inc. (NASDAQ:YHOO) aims at strengthening the portfolio of its company so as to compete with the arch rivals like Google, Vimeo as well as a few other companies offering video services.
