DIRECTV (DTV)’s Bid for Hulu

As an investor, keep an eye on other video streaming services as they position themselves to be attractive acquisition targets for Yahoo! Inc. (NASDAQ:YHOO). With the failed Dailymotion deal behind them and a rumored Hulu bid, Yahoo! is definitely in the market for a streaming video service.

Blip would be a great acquisition target for Yahoo! Inc. (NASDAQ:YHOO), because the web service offers both premium and user based video content. With the recent addition of premium TV and movie content, Blip is able to compete directly with both Hulu and YouTube.

Time Warner Cable
has also expressed interest in acquiring or owning a majority stake in Hulu. The company believes that the Hulu video site could help Time Warner move beyond regional limitations and expand its offerings to a broader audience. Partnership with Hulu would allow them to create a national footprint in the TV and video industry and help expand their ad revenues.

Time Warner Cable Inc (NYSE:TWC) is also in talks with Apple Inc. (NASDAQ:AAPL) to strike a deal in providing Apple TV’s streaming video service to Time Warner customers. The cable company already has apps developed for Apple computers, iPhones, and iPads. The technology is already in place to enable quick implementation of Apple TV into Time Warner Cable Inc (NYSE:TWC)’s service plan. The latest talks between Time Warner Cable Inc (NYSE:TWC) and Apple Inc. (NASDAQ:AAPL) demonstrate the eagerness for paid TV companies to get into the video streaming business.

The bottom line

Hulu is an asset that could transcend the business model for any of the satellite or cable TV providers. Acquisition or partnership with Hulu would allow a paid TV provider to expand their market and offerings to a new and broader audience. As an investor, keep tabs on the DirecTV and Hulu deal.  An acquisition or partnership with Hulu would allow DIRECTV (NASDAQ:DTV) to increase market share while ensuring future growth.

The article Game Changer: DirecTV’s Bid for Hulu originally appeared on Fool.com and is written by Ryan Sullivan.

Ryan Sullivan has no position in any stocks mentioned. The Motley Fool recommends DirecTV. Ryan is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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