Google Rumored to Buy YouTube for 1.6 bn

17 comments

Michael Arrington reports on rumors of Google buying YouTube for a price of 1.6 billion USD.

I got an email tonight about a possible Google acquisition of YouTube that may be in the final stages before closing. Rumored price is $1.6 billion. A quick phone call to a VC confirmed that the rumor is circulating (he also confirmed the price), but that is far from confirmation that this deal is happening. I’m digging for more but the source on this one is very good.

Comments

Whether this deal closes or

Whether this deal closes or not, Jordan Rohan seems a little less nuts this morning, no?

I don't know why

Anyone would pay that much for that site.. see here is the problem.. Google will overtake them anyway because it's sitting on the main page..

In short, that 1.6 billion could be allocated to other projects..

Own the Market

For 1.6 million they will outright "own" the video search market.

YouTube is a copyright lawsuit waiting to happen. Google has the money to defend it, making it much difficult to attack.

If you are a TV network, Movie Company, or Recording label is suing Google something you really want to do? Wouldn't it be easier and more profitable to work with Google and find away to monetize it and share the revenue?

If its true then I guess

If its true then I guess Mark Cuban has found his moron.

maybe google is getting it

maybe google is getting it for free as long as they pay the bandwidth bills of $1.6 billion

good luck to youtube and thanks for giving hope to a new round of hopeful startups

Its posted on WSJ.com now as

Its posted on WSJ.com now as breaking news.

GooTube?

Since YouTube have the audience, it should be possibly to add sponsored and pay video area to create an on-demand video network, and another channel for distribution of Google video ads.

This could be another nail in the coffin for traditional media companies. Existing networks eventually get turned into content shops and ad agencies, while Google controls the distribution infrastructure and hives off a percentage of all the business.

I think this could be the

I think this could be the AOL-Time Warner deal of search. Likely with the same outcome in my opinion. Despite googles deep pockets youtube is a huge liability to take on.

AP

The AP is now reporting on this rumor - link here

Flagrant

Just lovely, when one flagrant copyright violator buys another...

Incredibill:

Incredibill:
Just lovely, when one flagrant copyright violator buys another...

Now cue up the John "The Contrarian" Andrews intro song...

tsk tsk... sticks and

tsk tsk... sticks and stones.

Bill & John sitting in a

Bill & John sitting in a tree... well you know the rest of the song.

;)

Price tag aside, think

Price tag aside, think YouTube is a far better buy than MySpace anyday. :)

Graywolf, you have it backwards

When you are a lawyer looking at suing someone on a well founded claim, what you want is someone sitting on top of limitless piles of cash. Sure, they have the money to defend the suit, but if it's a good claim you can deal with that. What matters is that if and when they lose, they have the money to pay up.

YouTube on its own was not worth suing, because they didn't have the money to pay up. Once Google owns them, it's a different story.

This is why big corporations get sued all the time, and little companies don't. It's not that big companies break the law or hurt people more often - in fact, most are more careful and follow the law better. It's because they have lots of cash to pay the claim.

If Google really is out to rewrite the rules of content distribution, that's one more reason to sue them and not cut a deal. Why play Neville Chamberlain at Munich with the folks who have a plan to put you out of business? If it's going to end up being a battle, better to do it now while you still operate from a position of some strength.

None of this is to express an opinion as to whether YouTube has violated copyright, because I have no idea.

YouTube on its own was not

YouTube on its own was not worth suing, because they didn't have the money to pay up.

If you've seen anything about RIAA/MPAA behaviour over the past few years, you should know that they aren't interested in payment - they're interested in sending a message. Certainly on copyright issues. In such instances, they aren't suing for the money. They want to generate fear & loathing.

It's also worth remembering how the RIAA labels dealt with mp3.com in the late 90's - sued it until the stock was brought down, then bought it out, then dismembered the site. All because mp3.com stored licenced RIAA content in a technically different format online to what they were licenced to do.

So, no valid reason for the MPAA to avoid suing YouTube and bringing it to its knees - excepting for the fact that doing so could potentially alienate key consumer bases.

If Google bought YouTube they could negotiate copyright issues with distibution deals. If the MPAA simply stuck on a lawsuit, it would be threatening a major distibution partner with a protracted case. Maybe some think the MPAA is stupid, but probably not that stupid.

2c.

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