Yahoo (YHOO) is in preliminary talks to acquire online-video service News Distribution Network for $300 million, according to a report in The Wall Street Journal on Tuesday. Citing people who have been briefed on the matter, the publication states that the discussions are still early and a deal may not be reached for several weeks or may fall apart.
NDN is a video syndication service that works with newspapers and other online publishers. The deal could help Chief Executive Marissa Mayer’s efforts to better compete with Google’s (GOOG) YouTube and bolster Yahoo’s online video programming and video ad revenue.
At $300 million, an acquisition of NDN, which has more than 573 million video views per month across 51 million unique viewers, would be Mayer’s second largest at Yahoo, after paying $1.1 billion in cash last year for popular social blogging platform Tumblr.
Yahoo shares are up 81 cents, or 2.26%, trading at $36.71 as of 10:12AM EDT.