Yahoo Considering Taking On YouTube By Buying News Distribution Network

Yahoo appears to be betting big with a possible acquisition of News Distribution Network (NDN) on the anvil. Apparently the company is keen to compete with YouTube for Video Content viewers.

With an aim to bolster the company’s online video programming and video advertising revenue, Yahoo Inc. was supposedly having ‘preliminary talks’, reported Wall Street Journal. Founded in 2007, NDN provides free solutions for online publishers and content creators to monetize online properties using sophisticated video players and premium brand-safe content. Yahoo is reportedly looking at a figure of around US$ 300 Million.

This is certainly hilarious considering the fact that YouTube’s current valuation is close to or even higher than US$ 30 Billion and Google purchased the online video repository for US$ 1.65 Billion way back in 2006.

However, mere acquisition of NDN certainly won’t help Yahoo to take on Google’s YouTube. It will need continuous inflow of quality content. This is where Content Producers and Publishers come into the picture. YouTube has some of the biggest names in Production Houses as its content suppliers. Not to mention the hits generated by individual contributors, YouTube’s illustrious partner lists is certainly big.

Yahoo is trying to hit YouTube where it will hurt the most, by whisking away these content generators. According to a recent report by Re/code, Yahoo is actively trying to get on board some of the biggest stars and producers behind YouTube, for its own video competitor. The report says, “Yahoo executives have told video makers and owners that the company can offer them better economics than they’re getting on YouTube, either by improving the ad revenue or by offering guaranteed ad rates for their videos,”

Yahoo’s Marissa Meyer had decided to revitalize the company using any means necessary and she has zeroed in on three main avenues: Mail, Content and Mobile. The company has already revamped its Mail platform and even decided to resurrect dormant email ids by allowing newer people to adopt them. Yahoo’s Mobile endeavors have been widely publicized as the CEO firmly believes that the future is Mobile.

The only aspect left is Content and this is where Yahoo’s in–house team cannot do much. The company needs the support of external agencies if it wants to fill up its drives with content that is mainstream and popular and the only way to do that is by getting production houses on board.

Yahoo’s attempt at inorganic expansion started when it put in a bid to acquire Hulu. The company even attempted to buy DaliyMotion, only to end securing a controlling stake. Maybe it might get lucky with NDN.

[Image Credit: Yahoo]