http://www.michikono.com/2006/10/06/youtube-and-google/ Stuff only Michi cares to read Sun, 22 Jan 2012 10:48:00 +0000 hourly 1 http://wordpress.org/?v=3.3.1 http://www.michikono.com/2006/10/06/youtube-and-google/#comment-40 MichiKono.com » GooTube Rumors to be Confirmed Tomorrow? Mon, 09 Oct 2006 07:24:06 +0000 http://michikono.com/blog/2006/10/06/youtube-and-google/#comment-40 [...] I didn’t touch on this point on my last post too much, but $1.6 billion is a steal for YouTube. First, imagine if MSN were to lock in a deal with Youtube for advertising. Not only would that help one of Google’s most feared rivals, but the opportunity costs are through the roof. Seeing as YouTube has an immense amount of traffic, an exclusive advertising deal could easily cost upwards of half a billion dollars. And that’s what a company would PAY just to show ads — the actual revenue generated is far greater. Additionally, if the next big medium for advertising on the web is through video, having a 60% market cap on net videos (Google has 10% now) would be a huge advantage. [...] [...] I didn’t touch on this point on my last post too much, but $1.6 billion is a steal for YouTube. First, imagine if MSN were to lock in a deal with Youtube for advertising. Not only would that help one of Google’s most feared rivals, but the opportunity costs are through the roof. Seeing as YouTube has an immense amount of traffic, an exclusive advertising deal could easily cost upwards of half a billion dollars. And that’s what a company would PAY just to show ads — the actual revenue generated is far greater. Additionally, if the next big medium for advertising on the web is through video, having a 60% market cap on net videos (Google has 10% now) would be a huge advantage. [...]

]]> http://www.michikono.com/2006/10/06/youtube-and-google/#comment-39 Google-YouTube » Personal Insights on Web 2.0, Blogging, and Business Sat, 07 Oct 2006 21:37:07 +0000 http://michikono.com/blog/2006/10/06/youtube-and-google/#comment-39 [...] Since everyone else is sharing their thoughts on the Google-YouTube issue, thought I might as well too (even though I’m a little late to the conversation). The Wall Street Journal article added to the credibility of the possibility. $1.6 Billion dollars is a lot of money to pay for a company so susceptible to lawsuits. However, youtube does have a lot of traffic and a great brand name that many people know. Obviously, I’m sure Google is also thinking in terms of keeping it away from Microsoft or Yahoo! in addition to the audience that youtube draws (100 million videos streamed per day). So- is this a good business move for Google? I’m about 60% in favor of the deal from Google’s perspective (100% from Youtube’s perspective). Why not higher? Personally, I think the lawsuits are going to start to pile up VERY quickly if this acquisition occurs. Google has a market value of over $120 billion and about $10 billion in cash on hand, which is sure to bring the copyright lawyers in a hurry. We’ll se how this plays out…it’ll be interesting either way. [...] [...] Since everyone else is sharing their thoughts on the Google-YouTube issue, thought I might as well too (even though I’m a little late to the conversation). The Wall Street Journal article added to the credibility of the possibility. $1.6 Billion dollars is a lot of money to pay for a company so susceptible to lawsuits. However, youtube does have a lot of traffic and a great brand name that many people know. Obviously, I’m sure Google is also thinking in terms of keeping it away from Microsoft or Yahoo! in addition to the audience that youtube draws (100 million videos streamed per day). So- is this a good business move for Google? I’m about 60% in favor of the deal from Google’s perspective (100% from Youtube’s perspective). Why not higher? Personally, I think the lawsuits are going to start to pile up VERY quickly if this acquisition occurs. Google has a market value of over $120 billion and about $10 billion in cash on hand, which is sure to bring the copyright lawyers in a hurry. We’ll se how this plays out…it’ll be interesting either way. [...]

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