Votes | Average: 0 out of 5 Votes | Average: 0 out of 5 Votes | Average: 0 out of 5 Votes | Average: 0 out of 5 Votes | Average: 0 out of 5 (Be the first to rate this article) Loading ... Loading ...

by Mike Zazaian October 9, 2006 - 1:25pm, 1 Comment

Google and YouTube Could Ink Deal This Afternoon

After lengthy negotiations over the weekend Google and YouTube are likely to ink an acquisition deal as early as Monday afternoon.

According to an article from The New York Times blogs, Google’s acquisition of YouTube for $1.6 billion could go from fiction to fact sometime this afternoon. While no specific sources were given for the information, the article cited people involved in the talks for suggesting the deal’s inevitability. The source also noted that both the Google and YouTube camps have adjourned to their seperate corners, each board discussing approval before giving the acquisition a definite thumbs up.

Allegations of the deal come just hours after YouTube’s own announcement that the site will carry music and video content from Universal Music Group, Sony BMG Records and CBS. Content carried by YouTube, primarily music videos and clips from featured TV shows, will be available to users for use in their own artistic works. YouTube has developed copyright-detecting software that will allow the Studios to give the yay or nay on re-produced versions of its video and music.

While there has been no official announcement from either Google or YouTube, it seems that the buzz around the matter is reason enough think it legitimate. Google’s likely been eyeing YouTube ever since it surpassed Google Video in February, becoming the largest video-sharing site in the world. At present, YouTube boasts traffic of over 35 million users daily, while Google Video is graced by only 9 million. We all know that Google isn’t very good at being second best, and in lieu of buying out YouTube it doesn’t seem that Google Video would ever catch up.

But despite its enormity, YouTube has been under attack for its inability to police the illegal posting of copyrighted content. With over 100 million videos viewed daily, and only 60 employees to police them, YouTube users constantly post works that contain copyrighted music and video, which YouTube then becomes responsible for distributing. Marc Cuban, internet billionaire and owner of the Dallas Mavericks commented about the Google/YouTube deal on his blog:

“Dont think for a minute that there wont be lawyers writing songs, having their buddies perform them, and putting them on YouTube, jerry-rigging the number of views via any number of easy-to-do processes and then suing YouTube over it.

While it may be plagued by lawsuits and legal issues, Google certainly has deep enough pockets to combat them. Perhaps it sees YouTube as a shoot first, ask questions later scenario, where it can obtain a site that has enormous advertising potential for a price that, within in a few years, could inflate to double or triple its current. Either way, if Google decides to buy YouTube it will only extend Google’s internet dominance. And though lawsuits may scare Marc Cuban, the likes of Google Founder/CEOs Sergei Brin and Larry Page aren’t so bashful.

[via The New York Times]