Acquiring Fullscreen could help Yahoo recapture the attention of young consumer groups and expand its reach. Fullscreen accounts for nearly 3 billion views per month on YouTube and calls itself the "first media company for the connected generation." Founded in 2011 by former Google executive George Strompolos, Fullscreen supports various content creators and brands including Cyanide + Happiness and Night Owl Cinematics. Rumors have been circulating about the possibility of a YouTube rival from Yahoo and this acquisition could help. The rumored service is thought to launch later this summer. Yahoo's video service, if it launches, will be aimed at video creators unhappy with YouTube's terms and will allegedly offer more generous revenue-sharing deals or fixed ad rates. The new platform reportedly will allow authors to create their own channel pages and host videos, much like Google's YouTube. Yahoo said it would not comment on rumors when asked about the acquisition bid on Fullscreen.
Yahoo is not alone in expressing interest in acquiring Fullscreen. Private investment firm and Fullscreen shareholder, Chernin, has also expressed interest in the content provider. Chernin bought stake in Fullscren last June along with Comcast Ventures and WPP. It is understood that Chernin has the option to buy Fullscreen if other bidders do not offer at least $300 million. AOL and Comcast have also expressed interest in a potential acquisition of Fullscreen. There is no guarantee that Fullscreen will accept these offers.
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