YouTube a la Google
by
Randy Mears
So, Google has purchased YouTube for $1.65 billion; big deal. Since the introduction of the Internet and the World Wide Web, we have seen many similar transactions with higher price tags. But this deal has generated so much buzz, one wonders what all the fuss is about. Given the amount of respect that Google has earned in just a few years, I must assume that there is a method to their madness, and we may not fully understand until the dust settles.
Without getting into sooth-saying or an outpouring of opinion regarding the value of this transaction, I will just make a few observations.
- The very nature of YouTube makes it possible for its founders to directly address their vast community in an ultra-casual YouTube-esque style. This total lack of formality adheres to the “standards” of the YouTube community and is probably reassuring to its users. It gives a real community feel to the whole YouTube experience while imparting a certain uneasiness to the business sector.
- There is considerable opinion, both positive and negative, from pundits, investors and Internet celebrities. This outpouring of opinion makes for interesting reading, but I think we are in new territory. What we seem to have here is more speculation than information.
- Other related deals and acquisitions currently underway at Google need to be considered if one is to ultimately understand the big picture (an understanding that I don’t claim to have).
With Internet communities creating so much buzz lately, maybe it is a big deal. As is usually the case, we will be able to more accurately judge the merits of this deal for ourselves, in due time.
