Google in talks to buy video producer Next New Networks

Google Inc is in talks to acquire video producer Next New Networks, a move aimed at ramping up revenue for its video site YouTube, by strengthening its video content, The Wall Street Journal reported yesterday citing a person familiar with the discussions.

Founded in 2007, New York-based privately owned Next New Networks is one of the leading providers of original entertainment programming for the internet and the top YouTube content providers with over 5.7 million subscribers.

Funded by investors including Spark Capital, Goldman Sachs, Saban Capital Group and Fuse Capital, Next New Networks has made award-winning shows include Barely Political, Indy Mogul, the filmmaking network for the YouTube Generation, Channel Frederator, featuring the cartoons of over 1,000 creators, food network for the people Hungry Nation, car news network Fast Lane Daily, Comedy Thunder and others.

By the end of 2010, Next New Networks had the top two most watched videos in the world on YouTube, Bed Intruder Song and Glitter Puke.

YouTube, which Google had acquired in 2006 for $1.65 billion, although being a very popular site, has not been a profitable business due to its free video content.

The acquisition of Next New Networks would enable YouTube to hold on to its viewers as well as compete better with its rivals Hulu and Netflix, which have tie ups with large media companies for content.

A deal would also put YouTube into the business of overseeing creators of digital content in addition to aggregating videos created by others, said The Wall Street Journal.