Everyone knows by now that Google to Acquire YouTube but is it a good business move? I say yes.

The three knocks against youtube (from a business point of view, not the user experience which is obviously a huge hit) have been copyright infringement, bandwidth costs, and how to monetize. In fact, when discussing the rumours of the buyout on TWIT the panelists said that the copyright infringement issue was huge and that the rumours would never come true.

However, Google is in a great position to turn those negatives into positives:

1) bandwidth: Google has a bunch of huge data centers with lots of electric power, processing power, and connectivity. How better to use that than delivering youtube videos at a cost less than their competitors

2) copyright infringement: Notice all the deals (Sony, Warner, etc.) that Google has announced recently? And not just just for original content but also for “sampled” material used in video mashups. These and other similar signings will eliminate most of the copyright infringement problems. But why are those companies signing up with Google?

3) monetizing YouTube: Revenue sharing with the content creators for all the context specific ads that Google will be able to run with the YouTube videos solves both the problem of making money and appeasing copyright holders. Selling ads is what Google does best and this is another medium allowing Google to expand it’s advertising reach. Bright move.