Google
acquires YouTube for $1.65B in stock.
Congrats to YouTube founders for creating a company that is valued at $1.65B in less than an year. This is a truly remarkable achievement.
Did Google overpay or is this a steal?
Is this event going to herald another speculative (nee bubble) period, just like NetScape IPO started the dot com era?
Only time will tell.
Obviously Google places a high value on video content going online. Google wants to integrate their two crown jewels (search+ad platform) with YouTube video content and users. They outbid Yahoo to ge this done. Google is betting that they can get more out of YouTube in terms of monetization than Yahoo can. I think Google's track record so far on monetization of conent is pretty good. So this looks like a good bet.
Also, it will be interesting to see how Yahoo and MS try to play catch up in the online video space.
In any case, this development will only accelerate the unmistakable trend of video going online.