• paidContent, Friday, August 20, 2010 3:26 PM

Stifel Nicolaus analyst Jordan Rohan suggests in new a report - cited by paidContent -- that Yahoo should buy Hulu, or at least take a "significant stake" in the video site. "Enough with Yahoo's spate of small-scale deal making," is how paidContent interprets Rohan's remarks. "While an investment in Hulu doesn't solve Yahoo's long term relevancy problems single-handedly, it could reinforce Yahoo's position as a core entertainment destination," writes Rohan himself. Meanwhile, he criticizes Yahoo's recent deal-making, including its purchase of Associated Content (and interest in CafeMom), as being "not large enough to change how Yahoo is perceived by advertisers."

As paidContent notes: "A tie-up between Hulu and Yahoo, however, would provide it with an opportunity to cross-sell ads on a site that is a 'must-buy' among brand advertisers." PaidContent also suggests that a Yahoo deal might be "better timed" than a rumored IPO. "Despite its claims of rosy finances, there have been questions about whether the company is ready to go public, in part because its subscription service, which could ultimately provide a significant source of revenue, is just starting to roll out." Still, paidContent concludes that an outright sale seems "much more far-fetched, considering at least some of Hulu's joint venture partners likely want to retain some ownership of the site if they are going to keep their content there."

Read the whole story at paidContent »