IP Democracy: Google Purchase of YouTube Rumors Heat Up

When I first saw Michael Arrington’s report this morning of a rumor that Google was in talks to buy YouTube for $1.6 billion, I passed on making any comment about it. After all, Arrington clearly labeled his post a “Completely Unsubstantiated Google/YouTube Rumor” and put a 40% probability on the rumor being true.

Now, however, the rumor has gained momentum — even the Wall Street Journal has picked up on it (note that this is an open URL, i.e. not behind a firewall), sending out a “tech alert” email to who knows how many of millions of people. The WSJ reported that there are talks between Google and YouTube and the dollar amount is indeed $1.6 billion.

My guess is that all the leakage is designed by YouTube, or its investors, to pump up the bids in what no doubt is a rivalry among titans to get a hold of the hot web company. Viacom has already hinted that it too might be involved in discussions to buy YouTube, after having missed out on MySpace.

Whatever the truth may be, it makes perfect sense for Google to buy YouTube. The fledgling video superstar needs the protection and guts of a giant, and Google, as Arrington points out, “won’t be daunted by the prospect of dealing with a ton of pissed off copyright holders.” Plus, despite the search giant’s valiant efforts, Google Video is a snooze-a-rama….how much cooler would it be to have YouTube in its place?

Posted by Cynthia Brumfield on October 6, 2006 11:50 AM to IP Democracy