The deal will certainly create a monster outlet for Google and perhaps copyright issues can be technically addressed at the gateway.
A side story however, interests me more, which was in the piece that appeared in of all places Yahoo! News.
"Google's YouTube coup may intensify the pressure on Yahoo to make its own splash by buying Facebook.com, the Internet's second most popular social-networking site. Yahoo has reportedly offered as much as $1 billion for Palo Alto-based Facebook during months of sporadic talks."
"Yahoo really needs to step up and do something," said Roger Aguinaldo, an investment banker who also publishes a dealmaking newsletter called the M&A Advisor. "They are becoming less relevant and looking less innovative with each passing day."
To that I say, Yahoo! does not need Facebook, it needs a coherent IPTV strategy. Not much has been heard from Lloyd Braun of late and one wonders if Yahoo! has the determination to be a key player in the space? In addition, why is CEO Terry Semel, the former head of Warner Brothers Pictures not pressing the flesh with Studio executives to create on-line synergies?
A. Perhaps he thinks studios will see Yahoo! as competition
B. He does not see IPTV revenues as sufficient over the long term to offset Capex
B. He no longer has the clout to pull off big deals
C. That is what Lloyd Braun is suppose to do
D. All of the above
The New York Times article speaks to many of these and other points.
"Two years ago, Yahoo made an expansion in Hollywood in an attempt to produce new video-focused Web sites, but it later backed off from the plan amid internal bickering."
It is time for bold moves by bold executives, if they still exist.