Following on a report by Michael Arrington a few hours ago, WSJ reports online video sensation YouTube may indeed be in talks with Google for a rumored $1.6 billion acquisition. Such rumor-fads are generated all the time — and usually turn out to be false — but for some reason I have a gut feeling this isn’t one of those.
Since this report is still a highly possible-rumor, there isn’t much to say on its validity yet, nor are there any details other than the $1.6 billion price-tag. What will be, will be, but till then here are 10 reasons why I think Google HAS acquired YouTube:
- Google Video has been a failure.
- Contextual advertising can’t feed them forever.
- With the exception of Google search itself and GMail, Google hasn’t had a single product which has reached the same level of critical mass as YouTube has.
- They supposedly said ‘thanks, but no thanks’ to MySpace in their early days, and don’t want to let that happen again with YouTube.
- Google Video’s content sales have been low, but they have partners, and feel they could use them and boom ahead with YouTube.
- Google could easily pay for YouTube’s bandwidth bills, so that isn’t much of a problem.
- Half of the web’s traffic comprises of Google with search, YouTube with video, and MySpace with social networking. Google wants 2/3.
- Yahoo! bought JumpCut and Sony bought Grouper. YouTube’s clearly next in the line, and Google’s hasn’t acquired anything in a while.
- Google’s possibly the quickest company which could come up with $1.6 billion in lump sump, if that’s the kind of thing YouTube is looking for.
- Both Google and YouTube were started ‘from a garage in Menlo Park.’ Co-incidence? 😉
- BONUS: Google’s shareholder’s sons and daughters use YouTube, and they want to impress.
[tags]Google, YouTube, Acquisitions, Online Video[/tags]