It has long been rumored that Yahoo is interested in taking on YouTube. Apparently the company was looking into acquiring a major chunk of Dailymotion, but the deal is said to have been blocked by the French government. Yahoo might have given up on purchasing a majority stake, but its ambitions of taking on YouTube haven’t died down. Re/code reports that Yahoo is building its very own YouTube rival, and it may hurt Google’s video giant where it hurts in the process.
Several sources “close to the situation” claim that Yahoo has started approaching popular individual YouTube stars as well as major networks who create some of the most watched content on the online video giant. There have been complaints in the past by video creators and owners who believe they’re not making enough money on YouTube, Yahoo could lure them away with promises of more money.
Apparently Yahoo executives who are meeting with YouTube’s biggest stars are promising greater ad revenue and even guaranteed ad rates for videos. Yahoo may also allow provide them marketing opportunities on its home page, apart from giving them the ability to sell advertising in collaboration with Yahoo sales force.
It is not known right now how far development has come along and what exactly Yahoo plans on calling it. The company itself has not commented on the report, so it remains to be seen how it reacts.