October 6th, 2006
GoogTube on the way?
Google and YouTube are rumored to be in acquisition talks according to Michael Arrington of TechCrunch. The price? $1.6 to $2 billion according to his sources.
Acquiring a company that has solid technology and a huge amount of loyal users is a sound investment — just ask someone if they saw the YouTube video of <insert anything funny here>, and they will probably say "yes" or "I'll check it out". Google Video has a lot of the same content, but I don't see it ever becoming a replacement for YouTube — time to acquire.
If this does happen, the investment would more than pay for itself on advertising dollars alone — contextual video ads powered by Google will be a common occurance in the near future. Even if they don't monitize the service right away, the users alone are worth the price.
Garett Rogers is employed as a programmer for iQmetrix, which specializes in retail management software for the wireless industry.
See his full profile and disclosure of his industry affiliations.
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