I guess the question is, "Will it be worth it?" It's difficult to place a value on such deals and many times you can only eyeball whether it was a good or bad deal a few years down the road. I'm sure part of the incentive for Google was to lock out Yahoo! and other competitors from acquiring YouTube. Imagine if Yahoo! acquired YouTube? Google would always be second or worse in an ad space that has higher CPMs/CPCs than text AND seems to be the next big growth segment of online advertising.
If there could be such a controlled competitive field for Google, I'm sure they would have strongly considered to battle it out with YouTube and the rest of the field. How long would it have taken for Google to catch up especially since they seem to be maturing and focusing their resources more strategically now?
Anyway, here is the official press release. Dissenting view from Mark Cuban. Posts from Michael Arrington, where he brings up some good points on Google's relationship with Fox, and PaidContent.org has more here:
- Stock for stock transaction (for $1.65 billion)
- YouTube will operate independently to “preserve its successful brand and passionate community”.
- YouTube will continue to be based in San Bruno, CA, and all YouTube employees will remain with the company.
- The number of Google shares to be issued in the transaction will be determined based on the 30-day average closing price two trading days prior to the completion of the acquisition.
If there could be such a controlled competitive field for Google, I'm sure they would have strongly considered to battle it out with YouTube and the rest of the field. How long would it have taken for Google to catch up especially since they seem to be maturing and focusing their resources more strategically now?
Anyway, here is the official press release. Dissenting view from Mark Cuban. Posts from Michael Arrington, where he brings up some good points on Google's relationship with Fox, and PaidContent.org has more here:
- Stock for stock transaction (for $1.65 billion)
- YouTube will operate independently to “preserve its successful brand and passionate community”.
- YouTube will continue to be based in San Bruno, CA, and all YouTube employees will remain with the company.
- The number of Google shares to be issued in the transaction will be determined based on the 30-day average closing price two trading days prior to the completion of the acquisition.
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