Why Should Google Buy YouTube?

As you’ve probably heard, Google has purchased YouTube for something like 400 gazillion dollars worth of stock.  This kind of purchase may seem like some revised horror story from the first dot com dot bomb erra.  What the heck is Google thinking buying a compnay that has no revenue plan?  Sounds like a bad idea to many.

Also, with copyright issues on the rise with YouTube video sharing, it seems that Google is opening up a pandoras box of lawsuits with the purchase of YouTube.

 Sounds like certain doom for the Google megastar and maybe residual radation poisoning of Youtube.

Don’t be so silly.  Google is smart, very smart.  They know exactly what they are doing.  They’ve failed at Google video, but excelled in generating ad revenue.  How can the two be goog together? 

Well Google has recently signed quite a few licensing agreements with the big name distrubution houses and places like Warner Brothers.  The fear of licensing and copyright infringement pretty much disipates considering that these places that complained in the past will now share revenue with Google. 

So everyone makes out on this deal.  YouTube will proably turn into a super indexable video search engine, complete with Google Adwords, and video houses will make a buttload of cash from licensing agreements and padding advertisements within videos.

But what will happen to the free and coolness of YouTube?  Only time will tell.

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