Or is Google looking to ride the wave of next generation video content generation? And, if so, how certain are they that YouTube is that future? Google to Acquire YouTube for $1.65 Billion
“We are natural partners to offer a compelling media entertainment service to users, content owners and advertisers,” Eric Schmidt, Google’s chief executive, said in a statement.
Chad Hurley, a founder and chief executive of YouTube, said in the statement that his video site would benefit from Google’s “global reach and technology leadership to deliver a more comprehensive entertainment experience for our users and to create new opportunities for our partners.”
Legal concerns were a likely reason that, before Google announced the acquisition Monday, YouTube unveiled licensing deals with the world’s two largest music labels, Universal Music Group and Sony BMG Music Entertainment, as well as with CBS Corp. The deals clear the way for music videos, television news, sports clips and entertainment programs to be distributed free on YouTube in exchange for a share of whatever advertising revenue may follow.