Index: src/wp-includes/js/mce-view.js
===================================================================
--- src/wp-includes/js/mce-view.js	(revision 28687)
+++ src/wp-includes/js/mce-view.js	(working copy)
@@ -8,7 +8,7 @@
 // Ensure the global `wp` object exists.
 window.wp = window.wp || {};
 
-(function($){
+( function( $ ) {
 	var views = {},
 		instances = {},
 		media = wp.media,
@@ -637,60 +637,98 @@
 	/**
 	 * TinyMCE handler for the embed shortcode
 	 */
-	wp.mce.views.register( 'embed', {
-		shortcode: 'embed',
-		View: _.extend( {}, wp.media.mixin, {
-			template: media.template( 'editor-embed' ),
-			initialize: function( options ) {
-				this.players = [];
-				this.content = options.content;
-				this.parsed = false;
-				this.shortcode = options.shortcode;
-				_.bindAll( this, 'setHtml', 'setNode', 'fetch' );
-				$( this ).on( 'ready', this.setNode );
-			},
-			unbind: function() {
-				var self = this;
-				_.each( this.players, function ( player ) {
-					player.pause();
-					self.removePlayer( player );
-				} );
-				this.players = [];
-			},
-			setNode: function ( e, node ) {
-				this.node = node;
-				if ( this.parsed ) {
-					this.parseMediaShortcodes();
-				} else {
-					this.fetch();
-				}
-			},
-			fetch: function () {
-				wp.ajax.send( 'parse-embed', {
-					data: {
-						post_ID: $( '#post_ID' ).val(),
-						content: this.shortcode.string()
-					}
-				} ).done( this.setHtml );
-			},
-			setHtml: function ( content ) {
-				this.parsed = content;
-				$( this.node ).html( this.getHtml() );
+	wp.mce.embedView = _.extend( {}, wp.media.mixin, {
+		template: media.template( 'editor-embed' ),
+		initialize: function( options ) {
+			this.players = [];
+			this.content = options.content;
+			this.parsed = false;
+			this.original = options.url || options.shortcode.string();
+			if ( options.url ) {
+				this.shortcode = '[embed]' + options.url + '[/embed]';
+			} else {
+				this.shortcode = options.shortcode.string();
+			}
+			_.bindAll( this, 'setHtml', 'setNode', 'fetch' );
+			$( this ).on( 'ready', this.setNode );
+		},
+		unbind: function() {
+			var self = this;
+			_.each( this.players, function ( player ) {
+				player.pause();
+				self.removePlayer( player );
+			} );
+			this.players = [];
+		},
+		setNode: function ( e, node ) {
+			this.node = node;
+			if ( this.parsed ) {
 				this.parseMediaShortcodes();
-			},
-			parseMediaShortcodes: function () {
-				var self = this;
-				$( '.wp-audio-shortcode, .wp-video-shortcode', this.node ).each( function ( i, element ) {
-					self.players.push( new MediaElementPlayer( element, self.mejsSettings ) );
-				} );
-			},
-			getHtml: function() {
-				if ( ! this.parsed ) {
-					return '';
+			} else {
+				this.fetch();
+			}
+		},
+		fetch: function () {
+			wp.ajax.send( 'parse-embed', {
+				data: {
+					post_ID: $( '#post_ID' ).val(),
+					content: this.shortcode
 				}
-				return this.template({ content: this.parsed });
+			} ).done( this.setHtml );
+		},
+		setHtml: function ( content ) {
+			var test = '<a href',
+				dom = tinymce.activeEditor.dom;
+
+			this.parsed = content;
+
+			if ( content.substring( 0, test.length ) === test ) {
+				dom.replace( dom.create( 'P', null, this.original ), this.node );
+			} else {
+				$( this.getHtml() ).insertBefore( $( this.node ).find( 'ins' ) );
 			}
-		} ),
+
+			this.parseMediaShortcodes();
+		},
+		parseMediaShortcodes: function () {
+			var self = this;
+			$( '.wp-audio-shortcode, .wp-video-shortcode', this.node ).each( function ( i, element ) {
+				self.players.push( new MediaElementPlayer( element, self.mejsSettings ) );
+			} );
+		},
+		getHtml: function() {
+			if ( ! this.parsed ) {
+				return '';
+			}
+			return this.template( { content: this.parsed } );
+		}
+	} );
+
+	wp.mce.views.register( 'embed', {
+		shortcode: 'embed',
+		View: wp.mce.embedView,
+		edit: function() {}
+	} );
+
+	wp.mce.views.register( 'embedURL', {
+		shortcode: 'embed',
+		toView: function( content ) {
+			var re = /^<p>\s*(https?:\/\/[^\s"]+)\s*<\/p>$/gim,
+				match = re.exec( content );
+
+			if ( ! match ) {
+				return;
+			}
+
+			return {
+				index: match.index,
+				content: match[0],
+				options: {
+					url: match[1]
+				}
+			};
+		},
+		View: wp.mce.embedView,
 		edit: function() {}
 	} );
 
Index: src/wp-includes/js/tinymce/plugins/wpview/plugin.js
===================================================================
--- src/wp-includes/js/tinymce/plugins/wpview/plugin.js	(revision 28687)
+++ src/wp-includes/js/tinymce/plugins/wpview/plugin.js	(working copy)
@@ -158,6 +158,8 @@
 	// matching view patterns, and transform the matches into
 	// view wrappers.
 	editor.on( 'BeforeSetContent', function( event ) {
+		var node;
+
 		if ( ! event.content ) {
 			return;
 		}
@@ -166,14 +168,15 @@
 			wp.mce.views.unbind( editor );
 		}
 
-		event.content = wp.mce.views.toViews( event.content );
-	});
+		node = editor.selection.getNode();
 
-	editor.on( 'PastePreProcess', function( event ) {
-		if ( event.content.match( /^\s*(https?:\/\/[^\s"]+)\s*$/im ) ) {
-			event.content = '[embed]' + event.content + '[/embed]';
+		// If a url is inserted in an empty paragraph, wrap the url in p tags so it's detected by wp.mce.views.
+		if ( node.nodeName === 'P' && editor.dom.isEmpty( node ) && event.content.match( /^\s*(https?:\/\/[^\s"]+)\s*$/im ) ) {
+			event.content = '<p>' + event.content + '</p>';
 		}
-	} );
+
+		event.content = wp.mce.views.toViews( event.content );
+	});
 
 	// When the editor's content has been updated and the DOM has been
 	// processed, render the views in the document.