updated 03:20 pm EDT, Fri October 6, 2006
Google to buy YouTube?
Google is in talks with video host YouTube to purchase the popular service, according to an anonymous Wall Street Journal source, which would give the search giant an effective monopoly over Web-based video. YouTube is reportedly valued at $1.6 billion, serving over 100 million videos per day. YouTube has been considered a problematic prospective takeover because its popularity stems from both legitimate amateur and official videos, as well as illegal clips from movies and TV shows that are often uploaded without its knowledge or consent. A move by Google to purchase YouTube could have serious consequences for Apple, as the absorption of YouTube into Google would give Google CEO Eric Schmidt -- who sits on Apple's board of directors -- a strong influence over Apple's recent movie initiative, and could result in the merging of Web-based video with Apple's largely closed system, according to Electronista.
Apple reportedly spoke with Google in mid-September, shortly after debuting its iTV media streaming device, about gaining access to Google's online video library. Google consumer product chief Marissa Mayer confirmed that her firm was negotiating with Apple to bring the Google Video library to the new device. Google's chief spoke earlier this week about his company's partnership with Apple, revealing his positive views on the Cupertino-based company. Schmidt confirmed his desire for more partnership with Apple, saying that the firm is engaged in "the most remarkable second act ever seen in technology."