Tuesday, September 19, 2006

GigaOM » Did Warner take a stake in YouTube?

Hmm -- high-stakes poker, if so 

So far, the public details of the Warner-YouTube arrangement – how much songs can be altered, how much ad revenue will be shared – are slim to none. But Rafat Ali from paidContent picked up on an interesting detail in a Forbes story on the topic:

“[M]usic industry executives say that YouTube has offered other labels an option for an equity stake in the company as part of proposed deals.”

Forbes writer Peter Kafka notes that if Warner has taken a chunk of YouTube, other labels face an expensive precedent in their potential dealings with the startup. Universal, of course, will drive a hard bargain, with its publicly voiced attitude that YouTube and MySpace “owe us tens of millions of dollars.”

Source: GigaOM » Did Warner take a stake in YouTube?

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