The YouTube founders might be happy about the $1.56 billion deal with Google Inc. (GOOG) but so are the old-line media companies who slipped in before the deal was made to snatch up shares of the video-sharing Web site.
Three of four major music companies, Vivendi's Universal Music Groups, Sony BMG Music Entertainment, and the Warner Music Group Inc. (WMG) each quietly negotiated to take small stakes in YouTube as part of video and music licensing deals struck shortly before the sales. They look to profit by $50 million.
YouTube had long been considered a litigation mine field due to copyrighted songs and video material but the music company deals might help shield Google from copyright-infringement lawsuits.
Know More about the entertainment business at BizOfShowBiz.com.
Comment Preview