We like YouTube. A lot. It’s where we uploaded the infamous FU deposition clip — and where we’d like to upload more law-related video clips, if we can get our hands on them. We also go to YouTube to watch music videos, like ones starring Phil Alito look-alikes.
So were delighted to learn about YouTube being acquired by another company we can’t live without, namely, Google. The price tag was a hefty $1.65 billion, even though YouTube has yet to turn a profit. But hey, Google paid in stock. So if we see another internet crash, well, it all goes down the YouTubes (although it is true that Google, unlike YouTube, does turn a substantial profit.)
And it’s smart of YouTube to take steps to forestall Napster-esque legal problems, such as the nightmarish ones predicted by Mark Cuban. Per the New York Times:
YouTube said it had struck accords to license content from two of the four major music conglomerates — the Universal Music Group and Sony BMG Music Entertainment — and the CBS television network in exchange for a percentage of YouTube’s advertising revenue.
YouTube is also expected to use new technology to identify copyrighted material that users have uploaded to the site without permission, and to share ad revenue with media companies that own the video or music content. (YouTube made a similar pact with the Warner Music Group last month, and had a previous advertising deal with NBC in June).
YouTube took these steps just as it was winding up its merger talks with Google. It’s like taking tons of antibiotics to take care of that nasty case of chlamydia, right before you tie the knot. Good work, YouTube!
Dot-Com Boom Echoed in Deal to Buy YouTube [New York Times]
YouTube Wheels and Deals to Avoid Copyright Suits [Associated Press via Law.com]