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Is the acquisition a good move for YouTube?

Google today purchased YouTube Inc. for a reported $1.65 billion in a deal that will most likely help the company become a leader in the growing online video market. The deal is Google's most expensive acquisition that it has completed in its eight-year reign. Rumors of a potential buy out began circulating last week, and further reports claimed that a deal would be coming soon. YouTube will retain 67 employees, including the company's two co-founders – who are now both multi-millionaires.

Even though a number of readers and analysts think the merger is a good thing, it appears just as many are pessimistic about Google's decision to purchase YouTube.

Copyright infringement is a serious issue that Google will have to take a look at. Even though a lot of copyrighted material ends up being removed over time, it is still easy to discover a large number of copyrighted files being shared via YouTube. Universal Music is a prime example of a company accusing YouTube of costing the record company millions due to infringement. If Google can resolve some of the legal issues that it is acquiring along with YouTube, I believe the purchase will prove to be a good investment.

Remember Google Video? The service that has been a complete and utter failure compared to YouTube will not be eliminated any time soon. In fact, both Google and YouTube announced deals today with companies such a s Sony BMG Entertainment, CBS, Warner Music Group, and Universal Music group. The deal will allow users to watch music videos for free, while advertising revenue will head towards the proper parties.

Google has a number of ways that it wants to use YouTube to help push Google's online video campaign – including possibly creating a new video platform. The ideal situation would be for Google to provide its amazing advertising prowess alongside the vast popularity and creativity of YouTube's staff.

I am still very interested in hearing what you guys think about Google's acquisition of YouTube.



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Looks good to me...
By Trisped on 10/10/2006 12:25:28 PM , Rating: 2
The leagal concerns are not going to be that big. YouTub has already got people pulling the videos that shouldn't be there, so no judge is going to slapp them with a harsh fine. As long as the continue to increase their personel in this area, no one will touch them.

Personaly, I liked the idea of the google video site, but implementation was all wrong. You couldn't view the video at native res, or aspect, so you had to adjust your window to fake it or you had to deal with distorted pictures and pixelation. They didn't even have a good scaling mechanism. Hopefully they will combine the two systems and create one that is more powerful. That would be nice.




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