Comments on: Autopsy of how the youTube news Spread

By: bad username

bad username — Sun, 15 Oct 2006 02:03:33 +0000

You’re forgetting about how Universal threatened to sue YouTube shortly before the Google-YouTube rumors started. The Universal issue brought YouTube to the forefront first, and then the TechCrunch post hit.

By: Han

Han — Wed, 11 Oct 2006 10:41:45 +0000

Seldarius:

I believe they already have. The signed up all of the major music studios to put their music videos on google video and youtube (only EMI isn’t signed up), and CBS, NBC and PBS have all signed up with Youtube/Google to put their content online.

Legal problems exist only when the result is zero-sum (or when the party/parties involved are stupid/grredy). In this case, there’s too much money to be made by sharing revenue from Google ads.

By: Seldarius

Seldarius — Wed, 11 Oct 2006 08:46:11 +0000

reminds me of the microsoft and netscape dispute about IE ripping from Navigator.

I actually exclaimed “the prophecy had been fulfilled” when the news showed up on my tech crunch feed. lol

Indeed, a gamble it was, seeing that Google now have to take care of YouTube’s legal problems.

By: Bjorn

Bjorn — Tue, 10 Oct 2006 17:18:30 +0000

i hear from some finance-savvy friends the usage of stock is indicative of an overvalued stock price, which makes the acquisition “cheaper”. Companies use cash usually when their own stocks are not attractive enough…

By: wannapreneur

wannapreneur — Tue, 10 Oct 2006 11:22:00 +0000

Good point about the purchase being in Google stock, Han.

May have been Google’s way of saying “Welcome to the family!”

By: Han

Han — Tue, 10 Oct 2006 08:38:28 +0000

there is a very significant factor to remember here: the acquisition was done using shares. Google did not have to spend any of its cash at all, and GOOG’s sky high price would certainly help making it “cheaper” in the form of less new shares issued.

this also means that Google’s warchest remains untouched.

By: princesse

princesse — Tue, 10 Oct 2006 07:50:14 +0000

I could definitely find a synergy for this acquisition esp with the traffic YouTube is getting, as I have blogged. I do not think search engine providing video search is a good idea with all these new video sharing websites mushrooming on the Internet. Now, the only worry Google has is on how to monetize the product that will be continuously enhanced and maintained by YouTube. A better synergy don’t you think?

By: wannapreneur

wannapreneur — Tue, 10 Oct 2006 05:09:47 +0000

There are rich synergies between Google Video and youTube and I think that Google was wise to cash in on that. No point building and fighting what you can acquire. The hitwise link in the article above also shows how many more times of traffic youTube enjoyes compared to Google Video.

Also, the big media names in the industry are now listening to the new trend of the online media market and have signed deal after deal with youTube. Warner, CBS and Universal are some of the first parties to have inked deals with youTube.

Now that youTube joins the Google stable, the entity would also be able to benefit not only from Google’s technical expertise in frontend technology and interface, but also greatly from the infrastructural know-know that Google has to help it scale properly.

By: Bjorn

Bjorn — Tue, 10 Oct 2006 04:20:11 +0000

at least GOOG is doing sth about muscling into the video ad territory and diversifying their revenue model beyond text based ads. with 9.8B in the bank, they took a gamble that truly reflects entrepreneurship and pushes the organization towards a new lofty but tangible goal — to dominate video ads and monetize Youtube. The rest have to feed off the scraps altho NewsCorp can really rock the GoogleTube boat by crying to Supreme Court along with the other TV networks.

By: BL

BL — Tue, 10 Oct 2006 04:02:43 +0000

I think that Google made a big gamble in acquiring YouTube. Integration between both companies will take some time, but effectively, Google has now acquired the internet video market which Microsoft, Yahoo and even Fox (Rupert Murdoch’s media empire) want to covet for so long.