Is Google Buying Brightcove?

Both Silicon Alley Insider and Mashable are reporting that Google is in talks to buy Web video provider Brightcove for $500 million to $700 million. If true,  The move would make Google’s YouTube, the top consumer Web video site, a powerful player in the commercial Web video industry as well. Brightcove CEO Jeremy Allaire says that the company is profitable and cash flow positive. Analyst estimates put Brightcove on pace to do $80 million in sales this year—which would put this deal around 6-9X revenue.

To date, Brightcove has raised approximately $91 million in venture capital. For those unfamiliar with the service, Brightcove is essentially the YouTube of business to business video, powering video streaming on large sites like AOL, The New York Times and The Washington Post. And if completed, such a deal would give Google significantly more reach in online video.

• Rumor: Google In Talks to Acquire Brightcove for $500-$700 Million (readwriteweb.com)
• Google-Brightcove Acquisition Rumors Surface, Get Sunk (xconomy.com)
• Interview: Brightcove CEO Jeremy Allaire: ‘We’re Not For Sale’ (paidcontent.org)