Yahoo is about to acquire a stake in the European video site Dailymotion

Summary: Acquisition of Dailymotion in line with Yahoo CEO Marisa Mayer Grand content strategy last week US media reported that Yahoo was about to acquire a controlling stake in Dailymotion, a European video site, which valued about $300 million trillion. Dailymotion is called the European

Acquisition Dailymotion in line with Yahoo CEO Marissa Grand content Strategy

Last week, US media reported that Yahoo was about to acquire a stake in Dailymotion, a European video site, which was valued at about $300 million trillion. Dailymotion is called "YouTube in Europe".

U.S. Science and Technology blog Business Insider said it is not yet confirmed whether the deal is complete. But two different sources agree that the transaction will be completed. The question now is, why did Yahoo buy a YouTube-like site?

One answer is that the acquisition matches the ambitious content strategy of Yahoo CEO Marissa Marissa Mayer. According to sources, Ms. Mayer's plans include cutting Yahoo's original content costs to 0, working extensively with third party media brands, acquiring as many user-generated content as possible, and providing a personalized experience to consume the content.

But not everyone supports Ms. Mayer's plans, especially in reducing the cost of original content. "Mayer may be a product genius, but Yahoo is still an advertising company based on content," said a former Yahoo executive who recently left. There is no sign that Mayer realizes this. I cannot understand why there is a drastic change in technology to destroy the business of functioning content. Why not adjust your mailbox, search, and apps to keep the revenue-generating content business up to the present? At least until the important work is done. ”

Whether or not she likes Ms. Mayer's plan, the reason for buying Dailymotion is obvious: Ms. Mayer hopes to get the user's content from Dailymotion.

In addition, there is a simpler explanation for the deal: Yahoo's advertisers want to buy video ads. At present, Yahoo does not have too many video advertisement bit, and after acquiring Dailymotion, the video advertisement bit will increase greatly.

Yahoo is currently the 5th-ranked video site in the United States, ranked 8th globally, according to comscore, a market research firm. In the US and around the world, Google and Facebook are the top two video services. And if Yahoo buys Dailymotion, then the number of Yahoo video viewers worldwide will grow nearly one times, from 119 million to 230 million. In the United States, Yahoo's video business will be about the same size as Facebook after the acquisition of Dailymotion, with a video audience of about 60 million.

This means that Yahoo will be able to put in front of many popular video ads before the broadcast. If you make the most of it, Yahoo's revenue will grow.