It happened. The rumours were true and Google has purchased You Tube for $1.65 llion US. Yes, billion.
I have no idea what to say about that. I just can't fathom why You Tube is worth that much to Google. I mean, Google doesn't need the infrastructure and if it was about competition, Google could have just sat back and waited for You Tube to get sued into oblivion.
Mark Cuban sums it up nicely:
I still think Google Lawyers will be a busy, busy bunch. I dont think you can sue Google into oblivion, but as others have mentioned, if Google gets nailed one single time for copyright violation, there are going to be more shareholder lawsuits than doans has pills to go with the pile on copyright suits that follow. Think maybe how Google discloses what they perceive the copyright risk to be in the SEC filings might be an interesting read ?
Seriously. A total mystery to me.
Others think it makes sense:
I think that while others may be harsh on this move, I feel that Google recognizes the bigger tectonic shift from TV to Internet, from text to new media.
Google has already "tectonically shifted" with Google Video. Yet another reason why I'm mystified.
Anyone have a clue why Google would throw away a billion and a half dollars?