As a YouTube user I am excited about this potential venture for several reasons.
1. Someone’s Got To Buy It
We can look at their bandwidth estimation (reportedly between 25 and 200 TB/over $1M per month) and see that they can’t continue for long with the minimal VC they’ve scored. They have to be bought, and bought soon.
2. Google Sees Their Vision
While I hesitate to say Google Gets It (overused phrase), I can’t help but think their synergies are properly aligned. Google was willing to go years w/o profitability in order to make great search a priority. Now they are immensely profitable.
3. Share and Share Alike
Google, like YouTube, often errs on the side of the viewer, rather than the copyright holder. There is a match there with YouTube as well. However, with both services, at any time, you can pack up your toys and go home. You can use robots.txt to say that you don’t want your site indexed in Google and you can delete your videos from YouTube and the user license is no longer valid.
The price doesn’t seem all that steep to me either. If it really does go for $1.6B, I think that’s probably pretty fair to all involved.
One question though, what will become of Google Video?