Google would kindly like to own more of the internet
 

Report: Google in talks to acquire YouTube for $1.6 billion

Source

MOUNTAIN VIEW, Calif. (AP) — Internet search leader Google is in talks to acquire the popular online video site YouTube for about $1.6 billion, The Wall Street Journal reported Friday, citing a person familiar with the matter.
Mountain View-based Google and San Mateo-based YouTube are still at a sensitive stage in the discussion, the newspaper reported on its website.

The blog TechCrunch had reported on rumors of the acquisition talks. Google and YouTube officials declined comment.

Analysts said a Google acquisition of YouTube would make sense for both companies if the reported talks lead to a deal, especially considering Google's $10 billion in cash on hand.

"It's damn cheap for a company that already has a global presence," said Trip Chowdhry, an analyst with the San Francisco-based Global Equities Research. "YouTube's brand identity is no less than Google's and is no less than Coke's."

As YouTube's popularity continues to soar, she said, Google can help make sure the site's infrastructure can keep pace.

The acquisition would also immediately propel Google to the top of the online video heap. YouTube eclipsed traffic on Google's video site in February. By July, about 30.5 million people visited YouTube, compared with 9.3 million to Google Video and 5.3 million to Yahoo's Yahoo Video, according to Nielsen/NetRatings.

YouTube users watch more that 100 million videos daily.

Google's video service lets everyday users post clips, too, and unlike YouTube, Google also gives them the choice of selling video. All YouTube clips are free.

YouTube was founded in February 2005 by three former employees of eBay Inc.'s PayPal electronic-payment unit, and its chief financial backer is the Silicon Valley venture capital firm Sequoia Capital, which has invested $11.5 million. Sequoia was also an early Google investor.

The 25-employee YouTube is surging thanks to the increased availability of high-speed Internet connections and gadgets such as camera phones and digital cameras capable of taking video. Most of YouTube offerings are short amateur clips, although professional filmmakers, television networks and even political campaigns have posted materials.

But many of the site's videos contain copyright material, putting it at odds with big media companies such as Universal Music Group. YouTube immediately removes videos when copyright holders complain, but analysts said the company is still in a precarious legal position.

"Google would be taking on all that liability," Forrester Research analyst Josh Bernoff said.

But Google also could present a solution, Bernoff said, noting that the software innovator could develop automated systems to block attempts to post copyright materials. He also said Google's size and clout gives the company much more leverage than YouTube to negotiate deals with copyright holders.

When rumors circulated earlier this year that some major media companies were interested in buying YouTube, the company's chief executive, Chad Hurley, said the company was not for sale and a future initial public offering was possible.

Shares in Google rose $8.69, or 2.11%, to close at $420.50 Friday on the Nasdaq Stock Market.

I'm concerned that Google won't want all of the legal liability that is currently on YouTube and will therefore clean it up past the point of being sweet as hell. Just today I watched a South Park episode on YouTube. I doubt Google is going to want big media companies coming after them, which means no more cool shit like South Park.

Still awesome for the creators/investors of YouTube. $1.6 billion after just a year and a half in business. Wow.

I watched the episode on google video...but ya, I see where you're coming from.

...and just as I make that post I realize that said video has been deleted from google video.

One of two things will happen, of course.

Google will crack down on copyrighted material, making it hard to post videos, and thus decreasing the quality of Youtube videos, the appeal of youtube is that it's so easy to post a video, so you get a wide array of all kinds of crazy shiz.

Google doesn't crack down and gets sued, the suits probably wouldnt be too bad as long as they actively look for and block infringing files, but im not a copyright expert. More likely is that the blow to google's image (its "do no evil" motto) would outweigh the legal costs, google just wouldnt be the same innocent google if its constantly involved in copyright infringment legal battles.

Just the way I see things.

YOUTUBE also doens't have the south park episode readily available. I had to serach for fift3een titychringfucking minutes before I found it because the others had been remvoed due to copyright infringement.

why don't you just get the bit torrent of it? www.southparkstuff.com

It's official. They bought them for $1.65 billion today. Source.