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It is unknown if and when the deal between Google and YouTube will be made

The Wall Street Journal has published a report that claims Google is in negotiations to buy YouTube for an undisclosed amount – some speculation has the price tag on the site at more than $1.6 billion. A source familiar with the talks also said that the current negotiations are at a “sensitive” stage and could be halted or setback at any given moment.

While better technology allows larger frames, higher frame rates and better resolutions, the acquisition would make sense from a Google standpoint. YouTube's audience mixed with Google's ability to market ads could put Google in a nice position in the emerging market for video advertising. As of September 30, YouTube has almost half of the online video search market – serving more than 100 million videos per day.

The deal would, however, have some downsides for Google. The first problem the company would have to deal with is that YouTube has been facing pressure to clean up blatant copyright infringement by its users. Universal Music, for example, has claimed that YouTube owes the company “millions” because of infringement.

A number of companies have been trying to woo the YouTube co-founders into selling the company. Viacom, which offered $750 million for Facebook last year, may have also offered to purchase YouTube. Micorosft, Yahoo and the News Corporation have also shown previous interest in YouTube.

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Why toss away 1.6 billion???
By kibets on 10/6/2006 11:27:38 PM , Rating: -1
Who really cares about youtube anyway?
They offer nothing in the way of technology or innovation. Seems like a waste of money as Goog could easily create their own site where people can upload their videos.

Hell didn't Microsoft just announce their own video service site a few days ago? YouTube?? ZZzzzz...

By mechwarrior1989 on 10/6/2006 11:32:29 PM , Rating: 4
Wait what? Google create it's own video service? You mean like No way! Why would google ever want to do that? That's crazy talk!

Anyways, a lot of people care about youtube and while it doesn't make money it does provide a service, something which Google has built it's business around. By acquiring Youtube Google takes away some of it's competition and also acquires all the videos which are on youtube and can implament it's own Google search stuff and make everyone's Youtube experiance much better. Google can also use it for sticking it's ads everywhere in order to continue to generate ad revenue. I would think a smart thing to do to get people to upload videos which people want to watch is to give directors a cut of the ad profits. I think that would probably work better than adsense in some regards.

RE: Why toss away 1.6 billion???
By mushi799 on 10/6/2006 11:36:17 PM , Rating: 2
apparently a lot of ppl care about youtube, hence the 1.6 billion dollar offer. This isnt rocket science.

RE: Why toss away 1.6 billion???
By Trugentleman02 on 10/7/2006 12:23:10 AM , Rating: 2
YOutube is great for watching old shows for a quick fix without any of the bittorrent hassles. That would suck if google buys it and charges to watch episodes like it does with video google. Free is definitely better in this case.

RE: Why toss away 1.6 billion???
By xsilver on 10/7/2006 12:43:36 AM , Rating: 2
That's the whole point of the copyright infringment thing
watching tv shows, no matter how old is still technically copyright infringment.
Youtube is only popular because it engages in borderline legal/illegal activities.
Think of it as napster v2.0
look how well napster turned out once it got bought by aol

By crazydrummer4562 on 10/7/2006 1:20:19 AM , Rating: 1
*cough* GOOGLE VIDEO *cough*

RE: Why toss away 1.6 billion???
By AzureKevin on 10/7/2006 3:52:37 PM , Rating: 3
People need to quit being so narrow-minded. This parallels with the Yahoo Offers 1 Billion for Facebook article. There were people who posted that they didn't even know what Facebook was, and thus they asked why Yahoo would pay a billion for something that can't possibly be popular if they personally had never heard of. But just because you don't know what it is or don't like it, that does not mean everyone else in the world thinks the same.

RE: Why toss away 1.6 billion???
By JeffDM on 10/8/2006 4:04:04 PM , Rating: 2
Hell didn't Microsoft just announce their own video service site a few days ago? YouTube?? ZZzzzz...

Has any Microsoft web service proved to be popular? Usually Microsoft's web services have users because the people they have don't bother to go to any other site, IE points to the MSN services by default, but even exploiting lazyness wasn't enough to beat Google, MySpace, etc.

YouTube is a major name now, it has an huge existing user base and collection of videos, infrastructure and programmers. Anyone buying YouTube is getting all those in one package rather than having to build all of that up the slow way and risk not being successful. The user base is the hardest one to build, though attracting the talent is a little harder. Google is pretty popular among young programmers so that might not be a selling point.

The biggest problem is being able to monetize the site, I don't think what they have now is paying sufficiently.

"Young lady, in this house we obey the laws of thermodynamics!" -- Homer Simpson

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