Top Four Reasons Google Shouldn't Buy YouTube
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Top Reasons Google Won't Buy YouTube
- Cultural fit. Google is a massive distributed computing junky. YouTube hosts their service from Rackspace. Do you think the guys that built server farms on particle board to create servers so cheap they could be thrown out, would ever get in bed with guys that use managed services for hosting? No way.
- Google is about changing the game. When they launched Gmail, you could see the sweat creeping up the asses of Yahoo and MS execs a mile away. 2 GB or storage changed the email game. They'll look for a way to do it with video. And video is really a game of where you figure out how to deliver massive bits affordabley and reliably, and store a huge amount of data inexpensively. This is Google's game. Not YouTubes.
- $1.6B - $2B. If they are going to throw around this kind of cash, they'll do it for something they know will return jack. This means search deals like Fox and Myspace.
- If they are going to break from their pattern, and drop a lot of jack then they'll do it in the social space where they suck. Orkutt is a bust except in Brazil, which is still a bust.
- If YouTube is generating a ton of search traffic for money terms, which I don't think they are yet, then forget everything I said, because everyone will pay big bucks to increase search market share.
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Well, this was a bit surprising. It apparently heated up with Yahoo making a run at it, but ultimately Google went big. $1.65B. Surprisingly, the heads of Google thought it was a good curltral fit. Perhaps they were feeling the pain of passing on Myspace and decided to step up.
pauldeeds says:
3 years ago
Oops.