GooTube: Responses

Here are a few interesting comments from around the Net in the wake of today’s news that Google (GOOG) is buying Youtube:

• Mark Cuban, who had been the most outspoken critic of the prospects for Youtube: It will be interesting to see what happens next and what happens in the copyright world. I still think Google Lawyers will be a busy, busy bunch. I dont think you can sue Google into oblivion, but as others have mentioned, if Google gets nailed one single time for copyright violation, there are going to be more shareholder lawsuits than doans has pills to go with the pile on copyright suits that follow. Think maybe how Google discloses what they perceive the copyright risk to be in the SEC filings might be an interesting read.

  I think there will be supoenas to get the names of Youtube and Google Video users. Lots of them as those copyright owners not part of the gravy train go after both Google and their users for infringement… And what if I’m completely, absolutely wrong and no one sues anyone? That everyone just loves the fact that their content is available to tens of millions of viewers and advertisers and Youtube and Google definitely qualify to be protected behind the Safe Harbors of the DMCA ?

  That I’m an idiot and it really is different this time, and the content companies have all recognized that?

  Well, I’m ready for that too. I went ahead and registered www.effingreat.com because thats how much fun its going to be using Filesanywhere.com features to support a “load everything you own and share it with world” website.

  I will host in the same way as Youtube and Google. Upload in the same, don’t ask, dont tell approach. I will sell ads however they do. Preroll, or adsense or whatever…Am I suprised, by the Google YT deal. Yes. Does it open up a whole new world if they go liability free ? You have no idea.

• Henry Blodget find it interesting that it is an all stock deal: Gold stars to YouTube, Google, and their respective investment bankers for how they handled this one… Settle on basic deal terms and a provisional price, leak details so the market has a couple of days to chew on the idea, see how the stock reacts, neutralize the market’s biggest concern (lawsuits) by announcing a distribution pact with the main guy who might sue you, fix the price, rubber-stamp the press release, and go.

  It’s also worth noting that Sequoia and YouTube could easily have taken some cash off the table, but instead chose to go long Google stock at more than $400 a share. Yes, there are tax considerations, but if you think Google’s stock has top-ticked (or even if you just wanted to reduce risk), you would take some cash. Both Sequoia and YouTube obviously have insight into Google’s performance in Q3 and the current quarter, and neither party, presumably, would want to celebrate the closing of the deal by loading up on a tanking stock. The exchange rate has yet to be set, so Sequoia and YouTube could be gambling that a bad third-quarter report will temporarily hobble the stock, but this seems a bit too clever. So, on balance, amid the Yahoo-problem-or-industry-problem worries, probably a positive stamp of approval on Google’s current business trends.

• Om Malik has a list of winners and losers from the deal. Om, by the way, now plans to lose 40 pounds:

  Winners:
  1. Sequoia Capital, which invested about $11.5 million4 in two rounds and owned 30% of the company, which translates to about $495 million.
  2. Steve, Chad, and Jawed - the three co-founders of You Tube, who must be walking away with at least $200 million each. They own close to 50% of the company.
  3. Facebook, because now we can expect a knee jerk reaction from someone, probably Yahoo.
  4. Ferrari dealerships, cat litter companies and of course, the real estate brokers.
  5. Litigation lawyers
  6. Michael Arrington
  7. MC Hammer, who visited both Google and YouTube last year. Or as he sings - Can’t touch this!

  Losers:

  1. Yahoo, which is now going to make a move, well that is a move.
  2. Mark Cuban
  3. Me
  4. Google, because I think this is Compaq-DEC, Skype-eBay kind of a deal for them in the long run

• Barry Ritholtz says Google basically bought YouTube for free:Rumored since last week, the news drove Google’s stock up $8.50 today, following Friday’s nice point gain. Given Google’s 215 million share float, this acquisition was essentially free. The deal instantly catapults Google to the top of the pile in the fast growing world of online video. And if anyone can figure out how to monetize serving ads to YouTube’s users, its Google.
• John Battelle, author, blogger, entrepreneur (and back at the Industry Standard, my boss): I am mixed on this. I think it’s wise to frame this as “the companies will stay separate” kind of acquisition, even if in the end that’s not the intent. But this marks Google’s first significant “out of brand” acquisition, the company’s first true brand-management challenge. I’m not counting Blogger in here because, well, it wasn’t this big.

Earlier:

• The conference call, condensed.
• Live blogging the conference call.
• The companies make it official.
• The analysts get excited, even before the deal is announced.
• YouTube cuts deals with content partners.

Comments

[kkin365]

Good round-up. I am not familiar with the Compaq-Dell reference in one of the excerpts. omooc