Google Considering YouTube Purchase

The big G is reportedly making a move to acquire YouTube for around $1.6 billion in cash and stock, according to published reports.

This may become one of the best purchase ever done by Google although it already has it’s own video sharing service.YouTube is huge and almost everyone and their dog has at least one time viewed a video uploaded at the site and if Google does go ahead and splash the cash on YouTube it would propel them right at the top of the video content mountain as YouTube has an estimated 30 million registered users as compared to Google (9.3 million) and Yahoo (5.3 million).

YouTube’s rise to fame has been phenomenal having made it’s way to the masses via a garage by former employees of eBay Inc.’s PayPal electronic-payment unit in Febuary 2005 to a now 25 employee company.

The other good thing that would come out of this deal is the ‘copyright’ issue that has plaqued YouTube when users upload copyrighted materials on the site, although YouTube has been proactive and has removed any copyrighted material once a complaint has been made.Google however will have more leverage when they approach the likes of Universal Music, NBC, CBS etc.

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.

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