« Powerset - Natural Language Search | Main | YouTube content deals a huge win »

October 08, 2006



cant wait to short google.

alan shimel

Don- I have to disagree with you on this one. I think the You Tube acquisition is exactly the kind of bold move that will continue to keep the Google guys the company to watch in the Internet sector. I have been on both sides of a few acquisitions myself, but this one is really a no brainer. Would anyone say that News Corp over payed for My Space now. Same thing for You Tube. You Tube is a brand that is not going to be surpassed by any up and comer. Its only competition will come from a Yahoo or Microsoft, two companies Google is not going to buy. I think You Tube is the successor to EBay, Yahoo, Google as the next great Internet brand and if Google can wrap them up early, they should jump on it.

It is not just the advertising revenue itself. You Tube has the potential for revenue beyond advertising. Also, I think the IP issues will take care of themselves. The genie is already out of the bottle for posting videos and there is no turning back. Bold moves are what keeps companies on top (unless they are lucky enough to enjoy a 90%+ market share ;-))


"Strategic partnerships" hardly ever work either. At least with an acquisition you get control. Google's not like most companies that suffocate their acquisitions. Google is the best candidate to work through the licensing issues as its done with cached web pages, images, books and catalogs.

Doug Karr

I respectfully disagree. Your perception and Mr. Cuban's are both very narrow and short-sighted.

The value in the YouTube deal is not about future profitability of YouTube, it's about market share and the internet. YouTube controls a very large market share of the net right now - that's worth billions in future market share of internet users and internet advertisers.

If Fox wants ABC viewers, having a strategic partnership would not have near the impact as Fox buying ABC and cross-promoting the content.

This is a proven business model in the media industry, and it will continue to be.

davis freeberg

I fail to see how Google picks up liability by acquiring YouTube. Don't they have the same exposure with their own Google video service? Unless I'm missing something about how the technology is different, I would think that Google would face the same risks with their own NSnyc karaoke videos. Maybe people would be crazier to go after a well funded Google then an independent company like YouTube, but If Fox and Google are already able to share user generated content without getting sued, why would the risks be all that much greater? As long as YouTube continues to comply with the C&D request, it's hard for me to see how they are different.

Lloyd D Budd

You and Cuban are on the money.

Google's previous actions are the greatest clue to its future actions, and acquisition of this cost by Google is unprecedented.

On the other hand, an exclusive advertising deal is not only consistent with Google's history, I think it is safe to say it is in the works ;-)

Ron Wilson

I agree. It does not make a lot of sense to me to acquire YouTube other than Google to say...we own YouTube.

Scott Quick

We've yet to see just how enduring the brand equity of these social networks will turn out to be. A strategic alliance pinned to performance metrics is desirable in so far as it allows both companies to stick to their knitting while wringing out all the low hanging value that is truly accretive... something that most M&A fail to deliver on.

The comments to this entry are closed.

My Photo

Enter your email address:

Delivered by FeedBurner

Twitter Updates

    follow me on Twitter