The Yahoo is in preliminary talks to buy the display service Online News Distribution Network (NDN), a deal that would help the company compete with Youtube, the videos Google in number of views and ad revenue.
Yahoo can pay about $ 300 million by NDN, according to two people consulted on the matter, who asked not to be identified. Negotiations are initial and business can take to be closed or even scrapped, according to the sources.
The company president Marissa Mayer made the video online services a centerpiece in its strategy to keep users longer on Yahoo pages. An online service that offers newspapers and video sites on news, sports, politics and other matters, the NDN could help Yahoo to expand its offering to thousands of new sites and create lucrative opportunities for partnerships with advertisers.
“We are not in talks to be bought by Yahoo at this time,” said Krystal Olivieri, spokesman NDN in an interview.
Yahoo has considered the acquisition of NDN first before Marissa Mayer assumed the presidency in 2012, but no deal was closed at the time, says a source. The talks were resumed in recent weeks, as Mayer seeks to build a portfolio of video content to rival YouTube . At $ 300 million, the NDN would be the second largest purchase of Mayer on Yahoo, which disbursed $ 1.1 billion by Tumblr, in 2013.