What Would Happen if Yahoo bought Hulu?

A report from the LA Times suggests Yahoo! is the mystery company that approached Hulu about a possible acquisition.

If true, Hulu CEO Jason Kilar could augment or even replace Yahoo CEO Carol Bartz and pump some much needed innovation into the combined companies. Without some fresh blood, an acquired Hulu runs the risk of becoming just another Yahoo property; one that dies a slow, painful death like Delicious or becomes stagnant like Flickr. [LA Times]

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Honestly, this post surprises me, because although I never thought that Yahoo was broke, I though for sure that they hadn't been making as much money as they used to, and therefore weren't really in the market for buying companies.