Form of ... an immense Internet media / search conglomerate!
I haven't been this lightheaded over a company merger since Fox bought MySpace and made me pass into a coma for a full week. Google has its own less popular video service, but went and spent 1.65 billion dollars worth of stock to acquire everyone's favorite source for free music videos and cartoon mashup projects, YouTube.
The legal status of YouTube may be guaranteed to give its new owners some headaches, but at least Google has the pockets to ride out a few litigation cases. Some of the potential problems may be mitigated by GooTube (oh the horrors of that frankenmoniker) making deals with Warner Music Group, Universal, and Sony to allow labels to filter unauthorized content and share in revenue. They also brokered a deal with CBS along similar lines.
There are countless pages devoted to reactions but Boing Boing has a nice article including links to Mark Cuban's blog, who continues to deride the deal. That guy would know. He managed to buy a basketball team after pulling off a similar sale to a search giant back in the day.