Google Buys YouTube

Google is set to acquire YouTube for $1.65 billion in stock -- whoo-hoo! But in the short term, not much will change at YouTube. YouTube will continue to operate separately from Google, although it will leverage Google's advertising relationships to make money. Not sure what this news means for YouTube's treatment of users and copyrighted material. YouTube's growth has been on the backs of both copyrighted material and users -- but the company has treated both with an amount of ambivalence that have pissed off content creators and the users that upload the content to YouTube.

If Google Video is any indication, YouTube will become more restrictive with the content that is being uploaded. That may stymie their growth, although revenues should grow as Google advertising business is leveraged.

Updated: Oct. 10, 2006
Google Trends analysis of YouTube and Google Video traffic shows a good reason for Google's purchase: YouTube was kicking Google Video's butt.

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