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Google Inks Video Pact with Top Music Labels

Google has signed distribution deals with two of the world's top music labels, potentially paving the way for acquiring YouTube.

Google said on Monday it had signed agreements with Sony BMG and Warner Music Group to offer music videos, reports Reuters. YouTube, reportedly targeted for acquisition by Google, on Monday announced a similar deal with another top label, Vivendi's Universal Music Group. Sony BMG is a joint venture of Sony Corp. and Bertelsmann AG.

Those pooh-poohing the idea of anyone's acquiring YouTube have pointed to a high likelihood of lawsuits against it - and against any company acquiring it - for copyright infringement. Both Google and YouTube seem to have just eliminated the likelihood of such a legal challenge from large music labels.

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