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RIP You Tube
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?

2 Comments/Trackbacks

Google probably likens YouTube to an ABC or NBC and this gives them more control for adwords purposes.

Still I can't help thinking that with this acquisition Google has "jumped the shark". Google's CEO said it aligned with their mission of making the world's info searchable. What a load that is!

I think you got it - AdWords and AdSense. I keep forgetting that at it's core, Google is an advertising service. Pretty much everything they do is with the end view of serving ads on it.

Still...would it have been so hard to wait 6 months for You Tube to get sued into submission and then sit back as everyone moves to Google Video?

Still seems like a waste of the GDP of many countries in the world.

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