Since Google Video generally is the suckage, Google has gone and done what any giant corporation with a metric butt-load of cash would do: instead of fixing its problem, it went shopping for a replacement. And the result is Google owning YouTube at a cost of $1.65 billion.
This acquisition has been churning in the rumor mills for a couple of weeks, but now it’s official. It’s also coming on the heels of YouTube’s new deals with CBS, Universal Music, and Sony Music that allows it to use the copyrighted material of the media companies in exchange for revenue sharing and veto power. Thus, you’ll be able to watch the new Justin Timberlake video and not have to worry about lawyers knocking on your door. Don’t pretend you don’t like that song.
This makes sense for both companies, as YouTube is a perfect website for Google to place targeted ads from its huge advertising arm. In addition, Google has been working on impressive video technologies that only needed content, and with 65,000 new videos added to YouTube daily, it fits the bill squarely.
Edit: TechCrunch.com, our parent site, broke the story last week.
Google buys YouTube [Google News]