No Logic in Google-Brightcove Rumor

CAMBRIDGE, Mass., (TheStreet) -- Brightcove isn't the answer, nor is it likely the object of Google's (GOOG) video ambitions.

Rumors about the possible deal circulated Wednesday, where else but on Twitter, and some sites ran with the speculation. But while Brightcove, unlike Google, has found a way to achieve profits in video, the pairing makes very little sense.

Closely held Brightcove, which is backed by investors including IAC Interactive (IACI), Allen and Co, Accel Partners and the New York Times (NYT), among others, says it does not comment on rumors.

The juicy speculation of a deal between two of the largest video shops on the Internet is circulating in a sector still buzzing over Adobe's (ADBE) announced $1.8 billion deal for Omniture (OMTR). The move was seen by some as a thaw in tech mergers as growth-starved companies start seeking opportunities.

Last month, Google bought On2, a video encoding outfit. The move was part of Google's renewed effort in video, a unit known best for YouTube, but with designs to push into premium video.

Brightcove, a contractor to TheStreet, takes a different approach. Like its rival, Apple's (AAPL) Quicktime, Brightcove is a service that works under contract with companies to customize the look and operation of the video player and provide technical support. Google's YouTube videos are typically embedded in a variety of Web sites at no cost.

Google is expected to launch a pay for play premium video site as part of its expanded free TV and movies selection.

In other words, Google's got its eyes on the big screen.