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Microsoft and Google have agreed to jointly build a native YouTube app for Windows Phone 8, which will be released within a few weeks.



From All About Microsoft:
The pair announced on May 24 that they are going to build together a version of a native YouTube application for Windows Phone 8 that will meet Google's terms of service. The new app will be available in the Windows Phone Store in the "coming weeks," according to a Google spokesperson.

A quick play-by-play recap for those new to the latest Google-Microsoft feud: On May 8, Microsoft fielded a YouTube application that it built itself for Windows Phone 8. The problem: The app violated Google's terms of service by not serving ads and allowing video downloads. Google sent Microsoft a cease-and desist; Microsoft just yesterday updated its app, ceasing video downloads but still not serving ads.
  Microsoft and Google agree to build YouTube app for Windows Phone 8