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Google/YouTube deal analysis November 21, 2006

Posted by fukumimi in Economy & Business, Internet, law.

An interesting analysis posted on Mark Cuban’s blog.

“Do No Evil”, eh.

We’ll see if this scenario pans out, but certainly the fact that many of the media giants had shareholdings in YouTube  (which was announced just as the Google deal was announced), and it isn’t a stretch to imagine that it was not independent of discussions of a potential purchase (yes, that is an understatement). It may be difficult to prove Google’s involvement directly, but the timing screams Google involvement. WSGR are also known to have been both YouTube’s and Google’s regular outside legal counsel (Google got another firm – Simpson Thacher & Bartlett  – to represent them for the purchase deal, conflict of interest and all that).

Getting the media on-side for the immediate future (even if there are suits which will in most likelihood go ahead after some predetermined time) makes great sense for Google/YouTube. The media lawyers are probably hounding as many YouTube clones as they can as we speak.

My position has always been that virtually all of YouTube’s growth has been built on illegally posted content, regardless of the 建前 (tatemae – public stance) that YouTube has taken regarding its intolerance of IP infringement and the whole facade of it being a “user generated media” (user ripped media is more accurate probably based on actual content consumption metrics)

Google may not have blood on its hands, but I can’t believe that YouTube acted independently to engineer a scheme whereby the media giants get a financial reward in exchange for doing YouTube’s dirty work and taking out its competitors.

I’m sure the artists whose rights have also been trampled upon by YouTube are none too happy to see the media giants get a windfall whilst they don’t see a single penny….  But most of them probably don’t have the time nor the resources to pick a fight with Google.

Very cunning way to kick away the ladder and protect its dominant position.

“Do No Evil”, eh.

It would seem that Google has possibly lost sight of its roots.



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