Yahoo rumoured to buy news distribution service -

The dark satanic rumour mill has manufactured a hell on earth bit of gossip claiming that Yahoo is in preliminary talks to buy online video service News Distribution Network for $300 million.

The rumours appear to have been started by the Wall Street Journal and have been hotly denied by NDN.

NDN spokeswoman Krystal Olivieri was quoted in the Wall Street Journal story as stating that the company was not in talks to be acquired by Yahoo. Reached by phone on Monday, Olivieri declined to comment.

The deal makes a lot of sense for Yahoo. Its CEO e Marissa Mayer is looking for ways to take YouTube down a peg, or two and has made online video a centrepiece of her strategy to get users to spend more time on Yahoo pages and watching ads.

NDN is a video syndication outfit that supplies newspapers and other Web publishers with clips about news, sports, politics and other topics. It would help Yahoo expand its video offering to thousands of new sites and potentially create lucrative opportunities for marketers to work with Yahoo.

It is not the first time that Yahoo has tried to buy NDN. The company discussed it before Mayer joined in 2012, but no deal was reached. The talks have been renewed in recent weeks, apparently.