Yahoo! rumoured to be launching YouTube rival

Yahoo! may be aiming to penetrate the multibillion dollar video-sharing market by starting its own website, the latest rumours suggest.

According to Re/code, Yahoo! may start a video-sharing site much similar to its previous Yahoo! video venture, which would rival the likes of Google-owned YouTube.

In an attempt to lure users away from rival YouTube, sources say the company will try to offer YouTube stars contracts to move to the proposed site.

Yahoo's reported plans could see YouTube stars such as Pewdiepie make a permanent switch to their site.

While the company has not responded to these claims, it's not unlikely that the rumours are false. In recent years, Yahoo! has unsuccessfully attempted to invest in several ventures including French site Dailymotion in 2013Last May, the company also held talks to acquire movie streaming site Hulu, which failed after the site's owners rejected their offer.

In 2011, comScore ranked Yahoo Video third in the U.S in its category, behind Facebook and YouTube.

Yahoo! Video hits have declined since its peak in 2011.

Patrick Moorhead, an analyst with Moor Insights and Strategy, says Yahoo! has another chance of succeeding after the company de-ranked in 2011.

"Yahoo failed at video before, but that doesn't mean it would fail again. Yahoo needs to bring something demonstrably different to the table than what YouTube has. If they don't, they will fail. YouTube already has all the cat videos, so that wouldn't be a differentiator."

Yahoo! CEO Marissa Mayer took over the top position in in July 2012 promising shareholders that the company would return to its former glory under her leadership.

The CEO has announced the company will focus on a new direction in search, mail, mobile, social media to compete with their rivals.

Source: Recode via Computer World | Images via Font In Use, Crunchbase, Adweek

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