This changes everything: Google buys YouTube for $1.65 billion

October 9, 2006

It’s official.  Google just bought YouTube.  I will have more commentary as more details come.

Ben Charny of Market Watch has more details here.

Path now clear for Google to buy YouTube?

October 9, 2006

News:  Reuters is reporting that the Board of Directors of both Google and YouTube are meeting to vote on the $1.65 billion deal in which Google will acquire YouTube.  If approved, the deal could be announced later today.  (More from Reuters)

Analysis:  The timing of YouTube’s announcement of major deals today with Universal Music, Sony Music, and CBS supports the conclusion that a deal with Google is imminent.  YouTube’s deals with 3 major content holders today have cleared away some of the copyright concerns, and made it less risky for the Google board to approve the acquisition of YouTube.

Universal Music agrees to deal with YouTube, ending threat of copyright lawsuit; CBS + Sony also strike deals with YouTube

October 9, 2006

News:  Less than a month ago (see here), Universal Music CEO Doug Morris decried the “tens of millions” of dollars in copyright infringement of its music on YouTube.  Well, now Morris and Universal Music are singing a different tune.  They just agreed to a deal with YouTube to allow its users to incorporate Universal’s catalogue of music within their own home made videos.  (More from Reuters)  The deals are now coming, fast and furious.  CBS and Sony Music just struck deals with YouTube.  (More from AP)

Analysis:  This may go down as the single most important deal secured by YouTube, clearing potentially its path for an acquisition by Google or continued growth on its own.  The importance of getting the largest music recording studio within the YouTube fold cannot be overstated.  This is ginormous, to make up a word.

I hate to say I was right and Mark Cuban was wrong, but I will.  If there’s one thing I’ve been saying all along, it’s that business deals can and often do erase intellectual property concerns and uncertainty. Some readers may be tired of my mantra, because I’ve said it again and again. But I’ll say it one more time: instead of bringing IP lawsuits for alleged infringement, businesses often strike deals.  That’s the story of Google, the maker of Blackberry, and a host of successful companies.  Hey, look, now CBS just struck a deal with YouTube.  That makes it NBC, CBS, Cingular, Universal Music, Sony Music, and Warner Music who all have agreed to major deals with YouTube.  Do any credible analysts out there really still think that YouTube is about to go under?

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