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