Yahoo! Inc. (NASDAQ:YHOO) is seeking to acquire Fullscreen, a company that produces contents for YouTube, the video service of Google Inc (NASDAQ:GOOG) (NASDAQ:GOOGL) as part of its initiative to extend its reach among young people, according to Sky News.
The tech giant reportedly submitted a proposal to purchase Fullscreen for $250 million. Yahoo! Inc. (NASDAQ:YHOO) is not the only company interested to bag the content producer. The Chernin Group, an investment management firm founded by former News Corporation executive Peter Chernin is vying to acquire the company.
The Chernin Group is one of the shareholders of Fullscreen. The investment management together with WPP, the world’s largest advertising group and Comcast Ventures invested in the company in June last year.
According to the report, Chernin has the right to acquire Fullscreen at a previously agreed price if the content producer does not receive an acquisition offer of at least $300 million.
According to insiders, Digital content group, AOL, Inc (NYSE:AOL) and U.S. cable operator, Comcast Corporation (NASDAQ:CMCSA) are also considering the possibility of placing a bid to buy Fullscreen.
George Stropolos, a co-creator of a YouTube initiate that creates content for advertising partners established Fullscreen in 2011. The company is based in California.
Early this week, Yahoo! Inc. (NASDAQ:YHOO) launched an intelligent home screen app called Yahoo Aviate, which simplifies phones powered by the Android operating system of Google Inc. (NASDAQ:GOOG) (NASDAQ:GOOGL). The intelligent home screen app is expected to strengthen the position of the tech giant in mobile contextual search. Yahoo acquired Aviate earlier this.
Last month, Yahoo Inc. (NASDAQ:YHOO) purchased Blink, a mobile messaging app that has the ability to self destruct conversations or chats shared by users. The company made the acquisition as it seeks to further strengthen its position and profitability in the mobile space.