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January 25, 2007 9:36 AM PST

Google, YouTube to remain separate

Google says its YouTube viral video-sharing site, acquired last year for $1.65 billion in stock, will remain an independent subsidiary of Google and continue to operate separately.

Most of the user-generated and premium, licensed content from the likes of CBS for example, will be hosted on YouTube, the company says. YouTube, meanwhile, will benefit from future Google Video innovations, including video search, monetization and distribution.

So, status quo for now. Except now there is a tad more integration. As of Thursday, when you type in "cats dancing" in Google Video's search box you will get relevant video from YouTube too. YouTube's results were already being included in the main Google search box.

As with Yahoo's decision to run Yahoo Photos and Flickr independently, it's a bit confusing why Google is insisting on keeping two separate video sharing Web sites.

Elinor Mills covers Internet security and privacy. She joined CNET News in 2005 and previously covered search, online advertising, and portals. E-mail Elinor.
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