Tweet sparks rumours of Google plans to buy Brightcove

Rumours that Google is preparing to buy Brightcove erupted this week following a tweet from digital media blogger Mark Glaser saying the search giant was considering forking out up to USD700m for the white-label video streaming company. 

Acquiring Brightcove would make Google’s YouTube the dominant commercial web video provider, and potentially advance its plans to make more money from running ads against premium content. Brightcove’s customers include The New York Times, AOL, the Weather Channel and Universal Music Group. 

However, reports by blog Business of Video contradict Glazer’s claim, saying that a source at one of the companies has categorically dismissed talk of an acquisition. 

Commentators point out that, though Brightcove boasts an attractive list of clients, it comes with a heftier price tag than many less-established firms and its technology is not a good fit with YouTube’s systems because it uses a number of different server networks to distribute its video content. A deal also appears unlikely given recent comments from Brightcove CEO Jeremy Allaire saying that the company is profitable and is not interested in finding a buyer. 

Google’s recent acquisition of video-compression technology firm On2 Technologies may be fuelling speculation it is prepared to make another large purchase to improve YouTube. On2’s technology helps reduce the amount of data required to stream clips and is expected to be especially useful in coping with increased demand for video streaming from mobile phones.  

However, though On2’s acquisition indicates Google’s willingness to acquire other businesses to enhance YouTube’s capabilities, it will be far easier for Google to integrate On2’s technology than it would be to use the many different content delivery networks supported by Brightcove.