TechCrunch and others are reporting that
This makes good sense for Yahoo as a compliment to their other social web sites such as del.icio.us and Flickr. Metacafe blends the ease of YouTube with the social strategy of Fark, enabling contributors and visitors to sort through videos made popular by users.
Yahoo would also be able to utilize the service in its advertising platform as well. Many of the business-centric viral videos that don’t find success on YouTube are spread through Metacafe. Video is an area that Yahoo is lagging behind in, and a purchase of a platform such as Metacafe would help Yahoo in its catch-up play to Google.