59ideas

+

This must be the talk of the town. 1.65 billion in stock. Google purchase of YouTube is heating up the internet once again.

I watch YouTube because somehow Google Videos is not available in China. Would the acquisation cut off YouTube from China? I hope not.

Speculation, theory, analysis and naysayer abound.

The biggest take away for me is why buy YouTube when Google has its own video site? It is not the first time Google does this. I recall MeasureMap and Urchin (now Google Analytics). In the standard business textbook there are a few reasons for that:

1. Take out your strongest competitor
2. Create an even bigger market
3. Synergy, better leverage of resources

Whatever the case, I’m just an observer, sometime wondering how all these money game is being played out.