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Google to buy YouTube for $1.65 bil USD in stock

DailyTech reported last week the Google was in talks to buy online video site YouTube. The site currently holds nearly 50% of the online video search market and serves as many as 100 million videos per day.

Today, Google confirmed all of the rumors and announced that it has agreed to snap up YouTube Inc. for 1.65 billion dollars in stock. With the purchase, however, comes YouTube's baggage which consists of issues with copyright infringement and numerous lawsuits. The company is currently embroiled in a rather nasty fight with Universal Music.

Investors, on the other hand, for the most part have been enamored with the idea of a Google-YouTube merger. USA Today reports:

The deal would be by far Google's most expensive in its eight-year history. The lofty price underscores how important Google expects online video to become as more viewers and advertisers migrate from television to the Internet.

"This fits with Google's strategy," said Roger Aguinaldo, an investment banker who also publishes a dealmaking newsletter called the M&A Advisor, told the AP. "It's something that they couldn't build fast enough by themselves."

With this big merger now taken care of, who could be next on the takeover list? Investors are pointing fingers at a possible Yahoo acquisition of Facebook.com.



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You got Tubed
By Schadenfroh on 10/9/2006 4:52:34 PM , Rating: 4
Well, I guess Google and now pay for the legal fees from the RIAA and MPAA lawsuits that are sure to come because of YouTube.




RE: You got Tubed
By Brandon Hill (blog) on 10/9/2006 4:53:39 PM , Rating: 4
Expect the lawsuits to increase significantly with Google's deeper pockets :)


RE: You got Tubed
By jkresh on 10/9/2006 5:16:10 PM , Rating: 3
Actually I suspect the vast majority of copyrighted content will either be removed from youtube (assuming the deal goes through) or become licensed drm'd and have a charge. I would expect the new youtube to be very much like google video in terms of its content. This buyout is good in that it will be easier to search through youtube to find what you want, but it means anything not user generated is probably going to no longer be “free”.


RE: You got Tubed
By GhandiInstinct on 10/9/06, Rating: 0
RE: You got Tubed
By S3anister on 10/9/2006 9:53:48 PM , Rating: 1
"Goog Tube" LMfao.


RE: You got Tubed
By Xavian on 10/9/2006 6:10:01 PM , Rating: 1
i hope not, thats what makes YouTube. Stop that and you destroy what you paid some $1.65 billion for, google ads on YouTube i can take, but DRM'd user content? no thanks.


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