Google to buy Youtube for 1.6 billion


It’s now almost official that Google will buy Youtube for a whopping 1.6 billion. They’ll announce it after the close today.    Here’s the NYT take on things. I’d have listened to Mark Cuban because it seems to me he’s in a very unique position to analyze the prospects here, but they didn’t and soon Google will have a huge video footprint. Google Video has about 1/4 the traffic of Youtube. Combined I think they’ll dwarf the competition – at least initially, though this market, which should really be called “American’s stupidist and most mundane home videos” is still in it’s infancy.

It’s not clear to me that people will continue to spend hours and hours surfing and watching for the few gems in an ocean of crappy short clips but Google seems to think so, and it’s also true that there is an enormous amount of advertising money now spent on network TV that may flow to this venue. Google’s recent talk about NOT producing their own content and moving into offline advertising venues may relate to this decision – they want to become a key source to soak up as much of the dumb money now spent on extravagant, low ROI offline campaigns.

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About JoeDuck

Internet Travel Guy, Father of 2, small town Oregon life. BS Botany from UW Madison Wisconsin, MS Social Sciences from Southern Oregon. Top interests outside of my family's well being are: Internet Technology, Online Travel, Globalization, China, Table Tennis, Real Estate, The Singularity.
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1 Response to Google to buy Youtube for 1.6 billion

  1. Jim says:

    Youtube.com accepting $1.65 Billion from Google seems ridiculious to pay so much for a site that started a year and 6 months ago. Even giving them $50 million would of been enough.

    With all of the problems in our society, giving mass amounts of money for nothing isn’t going help Google or the world. Either way, the pay out is going to cause inflation on advertising which companies who use Google will have to raise their rates as Google raised theirs to buy Youtube.com.

    This was a dumb investment, I understand the logic but $1.65 Billion to 2 guys 28 and 32 years old? What are they going to do with all that money, isn’t the USA paying out too much for stuff like this.

    Anyway, this is way way too much money.

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