A very interesting take on the Youtube sale over at Valleywag:

[…] Google stood to lose a lot if an independent YouTube lost copyright cases. But now that the giant owns YouTube, it can throw its full weight behind not only fighting lawsuits, but staving them off with deals.

In other words, Google bought the lawsuits. And that may be its smartest purchase yet.

Put in that light, $1.65 billion begins to make sense. Youtube as a test case is worth far more to the Internet than Youtube as a site, particularly when Google’s UK ad revenues are beginning to eclipse TV.






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