Feeds

Google swallows YouTube for $1.65bn

GooTube? YouGoog? Yougle?

SANS - Survey on application security programs

YouTube finally made its owners some cash today when search behemoth Google coughed up $1.65bn for the video clip mix-tape site.

The deal, trailed all weekend, came within hours of both firms striking deals with what they’d probably describe internally as old media companies.

As Google put it in when announcing the buy, “The acquisition combines one of the largest and fastest growing online video entertainment communities with Google's expertise in organizing information and creating new models for advertising on the Internet.”

YouTube will retain its “distinct brand identity” Google said, as well as its employees. Its backers will retain a shedload of Google shares, which no doubt will be converted into readies as soon as possible.

What does it mean for users? Apparently, “The combined companies will focus on providing a better, more comprehensive experience for users interested in uploading, watching and sharing videos, and will offer new opportunities for professional content owners to distribute their work to reach a vast new audience.”

We can only hope this means Google will provide a sensible way of searching and navigating clips, and will hold out the prospect of paying owners of copyrighted material that finds its way onto YouTube.

The deal came the same day that YouTube moved toward full legitimacy with a trio of deals with media giants. Presumably Google was waiting for the video clip site to head off any legal threats before signing on the dotted line.

Universal Music Group boss Doug Morriss had previously described YouTube as a "copyright infringer" which owed his firm tens of millions in royalties.

Now it seems he has acquiesced to the increasing distribution strength of YouTube, as have the big wigs over at Sony BMG.

The latter has properly gotten into bed with YouTube, with a carve-up of per-click advertising revenues on pages carrying its content. Universal has stopped shorter, inking a "strategic partnership" instead. YouTube will simply pay it for each music video or user-generated video that uses its music.

YouTube founder Chad Hurley said: "As a new distribution channel for media companies, YouTube is committed to balancing the needs of the fan community with those of copyright holders."

Warner Music embraced YouTube in September. Three of the big four record companies are now on board, with EMI the lone dissenter, though a deal is inevitable. Smaller record labels have been posting music videos to YouTube for months.

In the third of today's announcements, CBS becomes the first of the American networks to get smart to YouTube. NBC struck a more limited deal in June. CBS CEO Leslie Moonves said: "We're now able to offer select entertainment, news and sports programming to a new significant audience, get paid for it, and learn a few things along the way."

As well as providing content, CBS will act as policeman for user-uploaded video. It'll have sole discretion over whether video grabbed from its TV channels is allowed to stay on YouTube's servers. CBS will get a cut of advertising on pages it leaves online.

The firm will be the first to trial this new system, which YouTube hopes will placate twitchy copyright holders.

Funnily enough, Google struck similar deals with Warner and Sony today. Fancy that.®

High performance access to file storage

More from The Register

next story
Sorry London, Europe's top tech city is Munich
New 'Atlas of ICT Activity' finds innovation isn't happening at Silicon Roundabout
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
prev story

Whitepapers

Designing a defence for mobile apps
In this whitepaper learn the various considerations for defending mobile applications; from the mobile application architecture itself to the myriad testing technologies needed to properly assess mobile applications risk.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.