News: The Google acquisition of YouTube was finalized earlier this week. Although Google paid $1.65 billion in stock to buy YouTube, as a part of the agreement, Google set aside 12.5% of the amount to fight copyright lawsuits (or, in Google’s words, “to secure certain indemnification obligations.” (More from the Chicago Tribune)
Analysis: $200 million is a sizeable warchest to fight copyright lawsuits. It’s sort of a dual edged sword, though. It shows that YouTube is willing to put its money where its mouth is to fight copyright lawsuits and prove its conduct is legal, but it also shows just how large the potential legal risk Google and YouTube estimated for copyright lawsuits.
November 24, 2006 at 2:20 pm |
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