Online video service Vudu is in acquisition talks, say US press reports, and Wal-Mart is believed to be the “likely buyer.”

Founded in 2004, Vudu offers a Web-based movie and TV episode distribution service via STB. The company’s service uses peer-to-peer technology to help distribute large video files. Wal-Mart failed in an attempt to launch its own media download service in 2007.

Vudu has raised a total of $21 million in funding to date, from backers

including Benchmark Capital and Greylock Partners.

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