Just recently I wrote an article about how YouTube, although is hurting, won’t disappear. My reasoning was that Google would simply expand the services it offers, from videos to documents and photographs. One thing I left out, and potentially the most important, was the possibility of high definition video, especially divx based video.

With the closing of Stage6 and the transition of the users to Veoh Video Network, this give Veoh potential for a Google take-over.

What are the pros and cons of a Google take-over? Should Google just add divx / high definition functionality to YouTube?

Barriers to a Veoh Take-Over:

Veoh is extremely popular
With a 1540% increase in visits from 06 - 07 it may be difficult to entice Veoh and their investors to sell to Google.
The Investors
Veoh has some major investors, listing Goldman Sachs and Time Warner
Viacom
Viacom is syndicating to everyone but YouTube, everyone including Veoh.

Reasons for a Veoh Take-Over

YouTube Needs to Grow
Google knows that they need to add to YouTube. With a full suite of applications Veoh has done all the legwork
Google Has a lot of Money
A lot of money is seductive, and it’s hard to say no when exorbitant amounts of money and google stock options is being offered.
Video Site Convergence
There are quite a lot of video-sharing sites sprouting up around the Internet. The bubble may be ending shortly, and sites may want to merge soon.
Small Total Funding
Veoh really didn’t receive a huge amount of funding, at $39.8M; Google might not mind consider this to be too huge a sum.
The Veoh Blog is on Blogspot
Veoh has already taken the first step towards Google, with their website blog being hosted by Blogspot!