Friday, October 06, 2006

YouTube: not a cheap date

The big news today is that Google aims on buying YouTube. The rumored price tag: $1.6 billion. Apparently, News Corp is another interested suitor.

Speculation about the acquisition of YouTube has been buzzing for months now, but there hasn't been anything like today's news flurry. Will Google succeed in this? The market seems to think so; its stock (GOOG) is up over 2% today.

$1.6 billion. Staggering. Google is sitting on mountains of cash and short-term investments, so this isn't going to break its back or anything. Still, Google should have given this a shot earlier this year, when it could have secured a better purchase price. Perhaps they tried this; I'd be curious to find out.

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4 comments:

James Cooper said...

I, for one, am awaiting with some curiousity and some apprehension as to how Google, or any other buyer, would turn Youtube profitable. I've read speculation about banners and links around the site, video ads appended to all the clips, and transitional pages and wonder if any or all of it could be pulled off without seriously hurting the massive user traffic to Youtube.

CyberCelt said...

Here to visit for C&C Monday. I have a post about how video can be monetized and you know Google will do it.
http://cooladzine.blogspot.com/2006/10/video-social-networking-and-you.html

Divya Uttam said...

Hi, Thanks for visiting my blog. This GooTube issue as you may call it has been much hyped. Almost every blog I have visited is talking about the same. Lets wait for the outcome.

Jonathan said...

Are you suggesting not to discuss Google's acquisition of YouTube until some later date? But it's so much fun to talk about it now! :)

Seriously, this is a huge event in tech business history -- all the blogosphere attention is certainly warranted. Fascinating questions keep popping up. The most recent weekend edition of the Wall St Journal ran an article about the possibility of litigation of YouTube by media companies, and how that might affect Google. How might it affect Google, indeed?