If anyone was wondering why Google made an all-stock deal with YouTube to acquire it, news of negotiations with media companies that could require big cash payments should answer that question.
report from Financial Times cited insider sources who claim Google CEO Eric Schmidt and other executives have been making the rounds of big media. The talks with Viacom, News Corp, and others could lead to Google paying out tens of millions of dollars for the right to have copyrighted video material appear on conditions of the Google-AOL deal should require a nice payday from Time Warner, the stars seem aligned for Google to get these media companies paid off and take care of business for the next 24 months. Pete Cashmore observed that Google Video and its highly touted partnership with the NBA has come to an end, just as the season began: All games, which had been previously available for a fee, have been pulled down from Google. My gut is that Google is having a lot of difficulty selling content on Google Video. If the NBA were making money with Google, you can bet they would have stayed there. In fact, they probably would have used it as a platform to promote their new League Pass Broadband service - but they didn't. NBA commissioner David Stern has overseen a resurgence in his league, with lots of amazing hoop talents like LeBron James drawing plenty of fan interest. Stern doesn't make bad business decisions, so this should be seen as a big thumbs-down for Google Video. The Financial Times referred to Google's talks with media companies as a "frantic round of negotiations." If Google was looking at the collapse of its search advertising business unless negotiations could avert that, then yes, talks probably would be frantic. But Google can afford the price. They know it, the media bigwigs know it. We just have to wait for them to hammer out a number while someone at Google writes the checks. Wouldn't it be cool if they brought back
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