The price of fame: Google wants YouTube (videos and mp3s)

Google reportedly talking with YouTube
By Paul Elias, AP Business Writer October 7, 2006

SAN FRANCISCO --Internet search leader Google Inc. is in talks to acquire the popular online video site YouTube Inc. for about $1.6 billion in cash and stock, according to published reports.
Mountain View-based Google and San Mateo-based YouTube are still at a sensitive stage in the discussion, The Wall Street Journal and The New York Times reported on their Web sites Friday, citing unnamed people familiar with the negotiations.

The blog TechCrunch had reported on rumors of the acquisition talks. Google and YouTube officials declined comment.

Analysts said a Google acquisition of YouTube would make sense for both companies if the reported talks lead to a deal, especially considering Google's $10 billion in cash on hand.

A tribute to YouTube: OLD, COOL and RARE stuff that you never used to have access to:

Talking Heads (live) - Psycho Killer (1978!)

"It's damn cheap for a company that already has a global presence," said Trip Chowdhry, an analyst with the San Francisco-based Global Equities Research. "YouTube's brand identity is no less than Google's and is no less than Coke's."

As YouTube's popularity continues to soar, she said, Google can help make sure the site's infrastructure can keep pace.

The acquisition would also immediately propel Google to the top of the online video heap. YouTube eclipsed traffic on Google's video site in February. By July, the number of monthly visitors had grown to about 30.5 million, compared with 9.3 million for Google Video and 5.3 million for Yahoo Inc.'s Yahoo Video, according to Nielsen/NetRatings.

YouTube users watch more that 100 million videos daily.

Irving - Situation

For my interview with this film's creator
please checkout the blog toolbar at the right of your screen!

Kasabian (live) - Shoot the Runner

Google's video service lets everyday users post clips, too, and unlike YouTube, Google also gives them the choice of selling video. All YouTube clips are free.

YouTube was founded in February 2005 by three former employees of eBay Inc.'s PayPal electronic-payment unit, and its chief financial backer is the Silicon Valley venture capital firm Sequoia Capital, which has invested $11.5 million. Sequoia was also an early Google investor.
The 25-employee YouTube is surging thanks to the increased availability of high-speed Internet connections and gadgets such as camera phones and digital cameras capable of taking video. Most of YouTube offerings are short amateur clips, although professional filmmakers, television networks and even political campaigns have posted materials.

But many of the site's videos contain copyright material, putting it at odds with big media companies such as Universal Music Group. YouTube immediately removes videos when copyright holders complain, but analysts said the company is still in a precarious legal position.
"Google would be taking on all that liability," Forrester Research analyst Josh Bernoff said.
But Google also could present a solution, Bernoff said, noting that the software innovator could develop automated systems to block attempts to post copyright materials. He also said Google's size and clout gives the company much more leverage than YouTube to negotiate deals with copyright holders.

When rumors circulated earlier this year that some major media companies were interested in buying YouTube, the company's chief executive, Chad Hurley, said the company was not for sale and a future initial public offering was possible.

Shares in Google rose $8.69, or 2.11 percent, to close at $420.50 Friday on the Nasdaq Stock Market

This from little tidbit came from Tech Crunch:

Hitwise, by the way, just posted some interesting traffic stats and discussion on Google Video vs YouTube. The gist of it is that YouTube is much bigger and growing faster and that Google sends lots of traffic to YouTube already, reportedly more than anyone but MySpace.
I wouldn't be me if I didn't do this:


MORE VIDEO (Comedy):

Stereolab - Shoes
(This one gets me every single time)


TEA PARTAH on Martha's Vineyard
(If you know Boston - this is funny)

Ryan: If Google buys YouTube it will be better for users than if another company buys the video giant. The nagging question is what will happen to unlicensed and copyrighted content. Will the content from live performances on television and spoofs still be available? This is something to keep an eye on.


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