Google (hearts) YouTube: What's Next?
Google has made an official announcement about its acquisition of video sharing site YouTube. Here are the details:
- Google bought the site for $1.65 billion in stock.
- The amount was agreed upon after Google made a lower offer which YouTube refused.
- The deal will close in the fourth quarter of 2006.
- YouTube will remain at its current office in San Bruno, CA.
- All 67 YouTube employees will keep their jobs.
- YouTube will retain its brand identity.
- Google Video will remain and become more integrated with Google web search.
- Google stock rose 8.5% today based on rumors of the sale.
During a conference call with the media this afternoon, Google CEO Eric Schmidt pointed to this morning's announcements of distribution deals with media companies Sony BMG, Warner Music and CBS, saying that they illustrate what is possible for the future of Google and YouTube.
That's an interesting point. Dallas Mavericks owner and new media mogul Mark Cuban has weighed in on this issue (and just posted again) saying that Google is opening itself up to lawsuits over copyright violations because of all of the unlicensed videos on YouTube. When Google buys YouTube, they'll be buying a company that makes money off of OPP, and that's a very bad thing for Google and its shareholders, says Cuban.
So here's a question: Does Google have the cojones to go to bat for its new step-child and get the necessary media deals in ink? Or will Google get spanked by the MPAA, RIAA, and Google shareholders, thus bringing all of the recent momentum in the online video sharing world to a screeching halt?
Choose your fate in the Wired News poll:
1.65 billion, hmmm... I guess now they can pay for all that bandwidth we've been wondering about.
Once again... as long as they don't get rid of the stuff I like, I could care less. It just means YouTube is going to be redone...
Google stock rose $8.50 amounting to ~2%, not the above listed 8.5%
video on the web
wow amazing!
YouTube was always better that google video. It was much easier to get your content up available. I hope it stays that way!
It's cojones, not cajones. A cajón is a box.
The fact that Google's dropping $1.65 billion suggests rather strongly that it will go to the wall to fight any copyright-related lawsuits that may be brewing.
They're betting that the upside from a fundamentally strong and monetizable integrated video search/service will far outweigh the lawsuits that RIAA and its ilk are already threatening. They're saying they are owed "tens of millions of dollars". Google's betting it'll make billions in long-term advertising revenues.
And Cuban? Sour grapes. He's ticked that he didn't get them first. He may also still be licking his wounds from his big TV flameout.
Google's playing in a bigger game that the content owners. Don't bet against the search giant prevailing when all is said and done.
Yeah...Google is SO not plotting world take over...this proves it...
They bought the community, YouTube's one!
I think that Google engineers could create a better technology, but the problem was the brand and the community.
I think it's an intelligent action, btw i dunno if the valuation of YouTube is too high, maybe overvalued.
I'd like to know how they valued the company, some ideas?
boy is google going to feel stoooopid when the web moves on to the next faddish website!
boy is google going to feel stoooopid when the web moves on to the next faddish website!
It's not "cajones", but "cojones".
The RIAA/MPAA can drink a nice warm glass of shut-the -hell-up.
I cite Section 230 of the Communications Decency Act, passed in 1996:
No provider or user of an interactive computer service shall be treated as the publisher or speaker of any information provided by another information content provider.
(P.S. That shut-the-hell-up line was spoken by Ben Stiller in Happy Gilmore. Am I infringing copyright by using it here?)
I am scared they will take out some videos, because of copyright problems.
Cojones means nuts. In that sense, also in Mexico yo can refer as "huevos"
Cheers
Mercedes
Atm YouTube has agreement with Warner Music, Sony BMG, Universal Music and CBS(and some others more); I think that those agreement will allow YouTube to mantain online content copyrighted by those companies and to start monetization: revuenue sharing (if they start selling videos, like Google.Video) and/or ads spaces.
My only question is: the Antitrust will act? Coz of the borning of such a web giant. I hope no.
Right now, Google Video has the capabilities to handle all of the video storage and bandwidth required. My understanding is that Google will allow YouTube to be it own identity allowing to flourish as it is. However, I am sure they will impose their standards of operation which may change YouTube. But I think this will put Google Video to the top of the poll.
See for yourself: http://todayspolls.googlepages.com/google_video_poll
So...does this mean that we'll finally get a functional Search feature on YouTube? :)