Wednesday, March 21, 2007

Google knew what they were getting into

I have recently read the article "Yahoo and YouTube" on the John Battelle's Search blog and he was basically commenting on this blog. The author of this article has an interesting theory on the Google/YouTube lawsuit. He believes that Google knew that the law suites would come before purchasing YouTube. Google wanted to own all rights to online videos, and knew that YouTube is the powerhouse. They also knew that a YouTube legal battle would take place any minute and YouTube did not have the lawyers to win. Google on the other hand does, and now that the deal has been made, not only will YouTube prosper, Google will reap the advertising benefits.

The author states "Letting YouTube fight this battle alone with their own lawyers might have resulted in a very public and unnecessary loss that would have crippled Google’s video ambitions and possibly caused collateral damage to a bunch of related industries (especially search)."

This is an interesting theory and makes a lot of sense.

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