Yahoo has submitted a formal proposal to buy Hulu, joining a growing list of bidders for the video service owned by News Corp. and Walt Disney, two sources with knowledge of the bid told Reuters on Friday.
Yahoo just this week announced a $1.1 billion acquisition of blogging service Tumblr. It now joins rival bidders for Hulu, including Time Warner Cable Inc, DirecTV, former News Corp president Peter Chernin and Guggenheim Digital Media, sources have said.
It is unclear how much the Internet company bid.
(Read More: Tumblr Deal Gives Yahoo Social, Mobile Boost)
Sources have said Chernin is bidding $500 million, excluding an additional sum to cover Hulu's debt and programming commitments. But a source close to the bidding told Reuters his offer was too low, that Hulu could be worth as much as $1 billion to $2 billion.
Time Warner Cable's bid was fashioned as an equity investment, another person said, as the cable operator hopes to set up a joint venture with other cable companies to operate Hulu.
Yahoo did not respond to requests for comment. Its shares closed up 1.2 percent at $26.33.
At least five bidders have emerged for the five-year-old video service with 4 million users, potentially setting up a bidding competition. A second source close to the bidding said the offers submitted so far were non-binding and dependent on Hulu amending content licensing agreements the bidders found too restrictive.