QDIS Blog

By now everyone surely knows that Google purchased YouTube for a whooping $1.65 Billion (that’s with a B).

Google snatches up YouTube for $1.65B - Yahoo! News

First, as a podcaster I believe that video is indeed here to stay and not just a fad as some think. So, I do believe there is value in video over the Internet. However, I really don’t think a brand new company such as YouTube is worth that much. I am glad to see that Google did the deal as an all stock transaction. Maybe the fact that I think Google’s stock is way over valued makes up for part of the inflated price.

Some folks have said its about culture and not business. However, I think both need to keep in mind that they are in the business of making money especially since Google has shareholders they are accountable to. It is good to see that Google will allow YouTube to operate as an independent unit.

I realize Google wants to be a major player in video and their attempts to date have not been very successful. It is nice to see that they don’t have the “not invented here” mentality and are willing to go after a major player in the online video area.

The price paid is too much when you consider the amount of potentially copyrighted material on YouTube. While I realize that YouTube has managed to get a truce with Universal, there are many other media companies out there who are not as likely to settle in my opinion. Also, this transaction has served to put YouTube on the radar screen of other major media companies. Also, not that YouTube will soon be a part of Google, there are now much deeper pockets involved. Some analysts seem to think that media companies will now rush to make a deal with Google, but I fear the opposite is true. Too many old stream major media companies still do not understand the new economy and the impact of the Internet. They would much rather take legal action against anyone they feel has impinged on their territory.

Bottom line, I think it was a good acquisition for Google, but I think they vastly overpaid for it. Only time will tell if it was a wise move.

Other Sources

News Stories

• google youtube - Google News
• Yahoo! News Search Results for google youtube

Blog Posts

• Google Blog Search: google youtube
• google youtube - Ask.com Blog and Feed Search

Technorati Tags: Google, video, Youtube

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