The hot rumor on the street is that Google is in take over talks with YouTube. The Wall Street Journal mentioned a sum of $1.6 billion.

This is one of the most unlikely marriages of all time. Google is the company with the “Do no evil” motto, and YouTube is a site that you can regularly find copyrighted material for free.

The potential for legal action by copyright holders will increase by orders of magnitude if the controlling company is known to have lots of money!

At first glance the aquisition of YouTube seems to make sense, it would dovetail very nicely into Google Video, and certainly Google has the hardware and network infrastructure to absorb this traffic.

Google currently are saying “No comment”, which in regular english means that the rumor is probably correct.

Everything seems to be going Googles way right now, and no one can deny that the services they offer to the internet user are wonderful, and the price is right..FREE.

This whole advert based buisness model could change though. If any of the Telco sponsered ‘Net Neutrality’ bills make it through the House and Senate Google could find themselves in a bit of a bind, and my guess is the number one item (after VOIP) that the Telcos are going to want to charge for is transmission of Video over the net.

Simon Barrett

http://zzsimonb.blogspot.com 

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