Old Man of Media Picks $1 Billion Fight With New YouTube Kids on the Block
Sumner Redstone, the octogenarian of media, threw a vicious body blow to Google (GOOG) today when his company sued the internet search king for copyright infringement. Viacom (VIA) claims YouTube (which Google purchased last year) illegally posts clips of Viacom properties such as “The Daily Show.” Is the move the start of a massive legal drag for Google's stock, or is Redstone out of touch with today’s media landscape which celebrates the YouTube founders -- 50 years his junior?
Jeff Macke says this lawsuit against YouTube opens up Google to pot shots.
Dylan Ratigan says hold on. There’s a real investment in that content, why should anyone give it away for Google (GOOG) to make money off of it?
To Eric Bolling, it sounds a lot like Napster. If Viacom prevails, the market will see a massive unloading of Google. However, this might also be the time to buy it.
Dylan adds that there’s a point where this issue gets too big to ignore.
Guy Adami says there might have been a sign this was coming a few days ago when UBS upgraded the stock and it went nowhere. He sees GOOG at $400 now.
Jeff says if you want to trade out of this, get out of Google and get into Yahoo! (YHOO). Yahoo! is getting their act together.
Tim Strazzini says it’s just going to be a fight that could get ugly.
Dylan says the bottom line is it might be a big problem for Google -- if you’re not in the stock don’t pick a fight.
On MAR 13, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders:
Bolling owns (ICE), (NMX), (PMI) put Options, (XOM), Gold, Silver, Soybeans, is short Corn. Strazzini owns (BRCM), (CHK), (MER). Najarian is short (MBI), is short (RYL), is short (CTX), is short (NDE), is short (HD), is short (HRB), is short (LOW), is short (HOG).