Slog: News & Arts

RSS icon Comments on Google Buys You Tube for $1.65 Billion

1

I don't get the logic of this. YouTube is hugely popular, but that's because it provides huge value for free. The bandwidth of the thing is just phenominally huge, but there's no revenue. The guys who started it get their $1.65 billion; what does Google get besides the internet's biggest bandwidth hog?

Posted by Fnarf | October 9, 2006 2:41 PM
2

You'll notice that Google is highly popular as well, but it's because they provide a huge value for free.

Google gets:
- One of the biggest sites on the internet to put its ads on.

- Rid of the competition in the online video market.

Google owns so much bandwidth already, that youtube won't touch them. I can only guess, but I would say youtube is a drop in the bucket compared to what google aready does bandwidth wise.

Posted by John | October 9, 2006 2:47 PM
3

zillions site visits that will translate to mega bucks of ad revenue from billions of clicks - the google formula

how quaint - a penny at a time -- as it were, billions of pennies, all electonic and never ending like a cascade, more and more every day as the habits of hundreds of millions of folks shift to cyber

Posted by Jack | October 9, 2006 2:49 PM
4

I've heard on average a google ad clicked is worth more than a dollar to the company.

Considering they had $720M in income last quarter, that breaks down to about 5,500 clicks per minute or 92 per second.

They're almost printing money.

Posted by John | October 9, 2006 3:16 PM
5

Note that Google's market cap increased by the amount they paid for YouTube in 1 day last week. Google buying YouTube is like me buying a nice pair of jeans.

Another important part of the logic for Google is that if they hadn't bought it, Yahoo would have.

Posted by Tone | October 9, 2006 3:45 PM
6

What John said in #2. Google gets more space to run their non-obtrusive advertising.

Posted by Gomez | October 9, 2006 4:04 PM
7

jesus christ, that's a lot of money.

Posted by kerri harrop | October 9, 2006 4:52 PM
8

there outta be a law...

Posted by Luddite | October 10, 2006 8:39 AM
9

Against monopolies? There technically is. Hahahahahaha....

Posted by Gomez | October 10, 2006 9:06 AM

Comments Closed

In order to combat spam, we are no longer accepting comments on this post (or any post more than 45 days old).