So today’s news (and I’d even say the tech news of the year) is Google’s acquisition of YouTube. $1.6 Billion is a very nice number.

I’d heard the rumours at TechCrunch the other day, and only took them lightly. Perhaps the number was too big, or I’ve been too busy, but it never really sunk in until it happened.

Why buy YouTube? Are they buying the name?

In one respect they are, it’s all about opportunity cost. Google know that online video is the next big thing, and what they can’t afford is to have a Microsoft, or Fox, buy YouTube and remain number one. This play is all about removing the opportunity for a competitor to buy YouTube and take number one.

This entry was posted on Tuesday, October 10th, 2006 at 9:32 am and is filed under Blog. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.