Monday, October 09, 2006

Google Buys YouTube

I had to. Because, well, they did it.

I know I said I was going to refrain from posts on the big names a bit, and I've got drafts of pieces on lesser known, non Silicon Valley start ups in the works. But I had to give my 2 cents on the big news.

The rumor mill had been churning for a while, and the whispers were dead on. Today, Google formally announced the purchase of YouTube, the rapidly growing video sharing site, for $1.65 billion.

My thoughts on the acquisition are mixed. In some ways, YouTube is a copyright nightmare just waiting to happen, as Mark Cuban wrote a little while back. The company could turn into the next Napster, and with Google backing it, that could bode poorly for the leading search engine.

On the flip side, Google wants their foot in the online video ad world, and this is a great way to realize that goal.

My overall conclusion is that time will tell. If Google can dodge or safely navigate the lawsuits and lega issues, the move will probably be a positive one. However, the impending cloud of legal worries puts a definite damper on the purchase.

The opinion pieces are everywhere on this one, so I'll save you some time and wait a little while before putting my thoughts up at length.
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