Business

Does Google mind YouTube losing money?

Internet video leader YouTube Inc.'s losses have been overblown by some analysts, but corporate parent Google Inc. doesn't mind the misperception, according to a study released Wednesday.

Dueling forecasts are the latest twist in a guessing game that has intrigued investors since Google bought YouTube for $1.76 billion in late 2006.

Google has acknowledged YouTube isn't profitable, but has refused to provide any specifics, leaving it to outsiders to figure out.

But Google has little incentive to set the record straight about YouTube's actual losses.

RampRate reasons the perception of large losses at YouTube helps Google negotiate more favorable contracts with movie, TV and music studios licensing their video.

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