Setting aside discussions about valuations, here are a few reasons why Google and YouTube would create an entity greater than its parts:
What does Google offer YouTube?
-
Technical chops to automatically identify when copywrighted content is being displayed
-
Negotiating clout when seeking an amicable deal to share revenues off user posted copywrighted material
What does YouTube offer Google?
-
Search queries – particularly video search queries
-
A sea of content for Google to syndicate to relevant places interspersed with high CPM video advertising