Here's one player that's already reacting to the Google-YouTube deal: MySpace. According to the WSJ, News Corp executives "expressed their displeasure" with Google, and threatened to ban YouTube videos from MySpace (they already did this before with YouTube, plus Revver and now Stickam). Now Eric Schmidt and VP of Advertising Sales Tim Armstrong are set to meet the big guns at News Corp this week - Rupert Murdoch, President Peter Chernin and Ross Levinsohn - to discuss the issue. Chernin recently said that MySpace would "crush YouTube" and other businesses that are plugging into MySpace - that was before YouTube and Google hooked up to become a massive player in the social media space.
A $900 million Google-MySpace deal was signed back in August, but now MySpace wants to expand that. One option being discussed is whether Google's video advertising could be leveraged by News Corp: that sounds a lot like integrating Adsense for Video with MySpace Video, giving Google a near-monopoly on video advertising. The threat to block YouTube is predictable, but it remains to be seen whether they carry it out.
Meanwhile, Yahoo is feeling the heat: the obvious reaction is to buy Facebook, with the most likely price around the $1 billion mark (perhaps even more, thanks to GoogTube). Even then, the acquisition would be seen as less significant as the Google-YouTube deal.