Yahoo (YHOO) Reportedly Submits Bid To Buy Hulu

Yahoo (YHOO) has submitted a bid to buy video streaming website Hulu, two sources with knowledge of the bid told Reuters on Friday.

In making an official bid for the five-year-old video service that currently counts more than 3 million subscribers, Yahoo will be competing with Time Warner Cable (TWC), DirecTV (DTV), the Chernin Group, and Guggenheim Digital. Private equity firms KKR and Silver Lake Management, which is teaming up with the powerful Hollywood talent agency William Moriss Endeavor are interested in Hulu, as well, Bloomberg reports.

According to Reuters, the Chernin Group, which is being run by Peter Chernin, one of the individuals at the helm of Hulu in its hayday, is bidding $500 million. But a source close to the bidding said the offer was too low, and that Hulu, which generated revenues of around $700 million last year, could be worth as much as $1 billion to $2 billion.

There’s no word on the value of Yahoo’s offer.

This bid follows the Web portal’s acquisition of blogging service Tumblr on May 20th for a hefty $1.1 billion.

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