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Google Inc. is snapping up YouTube Inc. for $1.65 billion in a deal that catapults the Internet search leader to a starring role in the online video revolution.
The all-stock deal announced Monday unites one of the Internet's marquee companies with one of its rapidly rising stars. It came just hours after YouTube unveiled three agreements with media companies in an apparent bid to escape the threat of copyright-infringement lawsuits.
one thing is for sure, adsense in the current form is not the right way to monetize the site and regain the expenses. google has to come up with new marketing approaches for that.
YouTube could represent an opportunity for Google to win credibility--and business--with mainstream advertisers and ad agencies who haven't shown much interest in AdWords/AdSense
If Google wants to expand its ad sales beyond niche direct-marketing products, YouTube could be a great way to get a foot in the door.
I haven't researched it myself, but if the comments in this thread with respect to how it was financed, etc., are accurate, then I think the incestuous nature of this deal may well cause serious questions to be asked in the future.
· Time Warner upset over the use of its material
· 100m videos under scrutiny for breaches
Dick Parsons, the chairman and chief executive of Time Warner, fired a shot across the bows of Google, saying his group would pursue its copyright complaints against the video sharing site YouTube.com.
From Guardian: Google faces copyright fight over YouTube [business.guardian.co.uk]
this is for leverage alone...we'll drop our complaints if you send us some traffic or more $$
1.5 B for a video sharing website is a record sum as far as i remember but no,thats not that easy to setup a service similar to YouTube and to make it that much popular.
That must be a good decision for Google but they are buying too many good project in last years..