Monday, October 09, 2006

Google Snaf-You

So Google snaps up You-tube for a mere 1.65 billion dollars. Doesn't that sound like the failed AOL-Time Warner deal from a few years back. Yes, you-tube has built a community although it still hasn't figured out a proper business model - and if they start forcing people to watch ads in the middle of what they believe is already theirs, You Tube will become the Boob Tube overnight. But this has to be the most expensive mistake in Google's history. The investor webcast doesn't shed much light on the real thinking...

Google CEO Eric Schmidt is asked if Google Video will be replaced. “Google Video does not go away, ever,” he says. YouTube will remain a seperate brand, community and experience within Google. “We want to preserve that,” said Schmidt.

Why for heavens sake?

“In the last 48 hours, we’ve been rushing to create a list of all the integration points with Google,” says YouTube co-founder Steve Chen. Google co-founder Sergey Brin said the first step will be to integrate YouTube into Google’s search functionality.

And recent copyright lawsuits in the wings? No clear answer. I'm glad I don't have Google stock on that one.

“When we looked at the marketplace there was a clear winner in the social networking side of video,” Eric Schmidt says. “And that’s what really drove us to begin the conversations.”

So again, why keep Google video???

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