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View Full Version : Google in Talks to Acquire YouTube for $1.6 Billion


Jason Dunn
10-06-2006, 08:56 PM
<div class='os_post_top_link'><a href='http://www.canada.com/vancouversun/news/business/story.html?id=e2600e1a-7465-492e-af66-60bae0048870&k=81215' target='_blank'>http://www.canada.com/vancouversun/news/business/story.html?id=e2600e1a-7465-492e-af66-60bae0048870&k=81215</a><br /><br /></div><i>"Internet search leader Google Inc. is in talks to acquire the popular online video site YouTube Inc. for about US$1.6 billion, the Wall Street Journal reported Friday, citing a person familiar with the matter. Mountain View-based Google and San Mateo-based YouTube are still at a sensitive stage in the discussion, the newspaper reported on its website. The blog TechCrunch had reported on rumours of the acquisition talks. Representatives from Google and YouTube did not immediately return calls to The Associated Press."</i><br /><br />No real surprises here - it's the Web 2.0 way. Create a company, get lots of eyeballs, bleed money with no real revenue model, then get bought up by a much bigger company and let them worry about how to make money with it. I have a feeling Google will screw it up though - YouTube is superior to Google Video in every way. Maybe that's why MSN launched <a href="http://soapbox.msn.com/">Soapbox</a> - they couldn't buy YouTube?

Felix Torres
10-06-2006, 09:25 PM
Yeah; its no shock.
And it makes perfect sense, too.
YouTube doesn't have a sustainable business model on its own while Google has no viable video-related vehicle for its ads.

Plus, Soapbox looks sweeet!!!

So, since Google obviously can't build a viable contender inhouse; they might as well throw money at it.
Kinda reminds me of Yahoo throwing money at Broadcast.com back during the Web 1.0 bubble; they never got anywhere near value for all the money they dished out and I doubt Google will, either, but it doesn't matter. Cause by now its official: welcome to Internet Bubble 2.0 as, once again, folks with more dollars than sense through sacks of gold at anything that looks even remotely viable.

Keep it up, Google!