Analyst urges Yahoo to buy Hulu

Strategic move could position site to cross-sell advertising

Stifel Nicolaus & Co. analyst Jordan Rohan encouraged Yahoo to either buy or take a significant stake in video site Hulu, according to an Aug. 20 report relayed by Bloomberg.

Yahoo's recent purchase of Associated Content and voiced interest in CafeMom may not be a big enough step to position Yahoo as a major contender in the entertainment arena. Rohan sees the proposed joining of Yahoo and Hulu as a huge opportunity to cross-sell ads.
"Such an acquisition could be a very smart strategic move as the Yahoo sales force would be able to cross-sell Hulu inventory with parts of Yahoo's own content initiative," Rohan stated.
The video site's recent launch as a subscription service is too early to prove its worth as strong candidate to go public. Thus, timing-wise, the Yahoo proposition could benefit Hulu more significantly than an IPO.
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