Will "GooTube" Hurt Data Center Demand?

The ripples from the Google-YouTube acquisition continue, and a blog post tonight by Mark Cuban will likely prompt further discussion of the deal and its impact. Cuban's post, titled "Some Intimate Details on the Google-YouTube Deal", shares what purports to be an insider's account of the negotiations and strategic concerns of the major players. Even the author, who posted it anonymously on an industry mailing list, acknowledges that the account contains both fact and informed speculation. It asserts that Google is worried about YouTube's audience eroding as copyrighted material is removed (see Comedy Central's takedown notice for an early example). To prevent this, the account asserts, Google asked other parties to "pile some lawsuits on competitors to slow them down and lock in Youtube's position." An excerpt:

It's important to note that Cuban has an axe to grind on this issue, as he was already on record with his belief that YouTube is a house of cards supported by copyright infringement, and was clearly taken aback when Google paid $1.65 billion for it. "I can't say its 100 pct accurate," writes Cuban, the billionaire investor and owner of the Dallas Mavericks. "I dont know. But it rings true, and I trust the source."

So take it with a grain of salt. It will be interesting to see whether denials (or non-denials) emerge on the key points raised by this account.