Yahoo has bid $250 million to acquire Fullscreen, a YouTube content provider that accounts for over three billion hits a month.
The Internet giant is looking to expand its reach and secure the attention of young consumer groups through the purchase of Fullscreen, Sky News reports (via Reuters).
Fullscreen accounts for approximately three billion views a month on Google-owned YouTube. Founded in 2011, the Culver City, Calif.-based company calls itself the "first media company for the connected generation," and supports a variety of content creators and brand through its network. Services, technology and mentoring are on offer through Fullscreen for content generators, and some of the most popular filmmakers in the books include 5-second films, Cyanide + Happiness and Night Owl Cinematics.
According to the publication, Yahoo is not the only tech firm interested in acquiring the content network. Fullscreen shareholder and private investment firm Chernin is also interested in a full buyout, and is understood to have the right to buy Fullscreen if other bidders do not offer at least $300 million. AOL and Comcast are also reportedly interested in a potential purchase.
There is no guarantee the firm will accept such offers, but if Yahoo does secure Fullscreen, the deal would underscore Yahoo's move into video content distribution — a prime area for monetizing adverts. According to reports, the tech giant — which has undergone rapid transformation since the appointment of CEO Marissa Mayer — is planning to launch a YouTube rival later this summer.
The new service will be aimed at video creators unhappy with YouTube's terms, and will reportedly offer more generous revenue-sharing deals or fixed ad rates to lure content creators. It is believed that the new platform will allow authors to create their own channel pages and host videos in the same way as Google's platform.