Yahoo! Inc. (NASDAQ:YHOO) is prepared to spend $250 million on the acquisition of Fullscreen , a YouTube content provider that accounts for more than three billion hit every month. The internet company aims at penetrating deeper in the younger demography by purchasing Fullscreen, according to Reuters citing Britain’s Sky News.

Yahoo

Others in race too

Other than Yahoo, there are more firms interested in buying Fullscreen. Chernin, who is a Fullscreen shareholder and an investment firm, is also interested in a full buyout and stands the strongest position to buy the web firm if any other bidder fails to offer atleast $300 million. AOL and Comcast are other big names interested in a potential purchase.

There may be a case, where Fullscreen may not be ready to sell. Recently, the company sketched out plans for shelling out $10 million on a new YouTube series as reported by The Wrap, and may also be hesitant in leaving Google for Yahoo.

Yahoo, however, appear to be in full swing to challenge Google by launching a new video service in summer along with alluring smaller content creators from YouTube.

Yahoo may lure with lucrative deals

Yahoo will try to allure the video creators, who are discontent with the YouTube’s terms and conditions, by offering a better revenue sharing deals or fixed ad rates. It is widely expected that Yahoo through its new platform would enable the users to create their own channel pages and host videos similar to Google’s platform.

If Yahoo succeeds in sealing the deal, although nothing can be said as of now, it would help the company to move aggressively in the video content distribution, which is a core area for monetizing adverts. Last month, there were reports that Yahoo, which has undergone rapid restructuring after the appointment of CEO Marissa Mayer, is prepping up to launch a YouTube rival later this summer.

On an average, Fullscreen garners three billion views every month on YouTube. The website was founded back in 2011 in the Culver City of California, and claims itself to be the “first media company for the connected generation.” The website lends it support to various content creators and brand through its networks. The company was founded by a former Google executive, George Strompolos.