Monday, October 09, 2006

Google buys You Tube!

It’s over. Google bought YouTube. All the details were as reported this morning : $1.65 billion in stock, with $100-$200 million going to each of the founders. The announcement is on google news.

Source :
http://mashable.com/2006/10/09/confirmed-google-buys-youtube/

I think the value is justified by the you tube effective growth and potential.
But let's remember that myspace, which is bigger and form my side, has more potential, is now a News corp company, acquired for 580 million dollars... Yes intermix was undervalorised. Good job Rupert Murdock!

I think the deal Yahoo!/Facebook will follow shortly. If Yahoo! don't move, a media group will do... Facebook is the last big player as social network...
It will be also good for yahoo!'s stock wich is actually very low after Panama delays announces.

3 comments:

Gregory Talon said...

The google/YT deal is not pleasant for Myspace. Myspace advance that they may block You Tube implementation on Myspace...

If think it's not a good way for myspace to do that... You Tube is generating value for Myspace from an user point.
If they start to do this kind of action i think myspace could lost users.

Ahhhh Google controls even more now!

Julien Marie said...

I do agree with you, Gregory. But in a way, MySpace is no more in a value-oriented model, but in a profit model now it has been sold to News Corp. The size of MySpace and the future of YouTube are changing things. MySpace has so a big size they could "choose" partners in a commercial way and now YouTube has to generate money...
I've got post on the subject : http://b.thewiseup.com/2006/10/15/about-youtube-acquisition-some-thoughts/

Gregory Talon said...

I think that every social based product have to focus first on value. It's the case for all companies but specially for for 2.0 platforms editors. If you've lost the value, you've lost the opportunity to monethize...

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