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October 11, 2006

Dawn of the “GooTube” era

It’s official. Google has acquired YouTube for a staggering £800m in stock.

The deal is being hailed as the most important internet acquisition in history. It is an amazing tactical move that positions Google as the world’s leader in video distribution.

Astonishingly, Google have acquired YouTube for nothing! In the last couple of days, Google’s share value has already exceeded the value of the stock they acquired.

Analysts are saying that although Google could have paid for the deal within six years by simply placing AdSense ads on YouTube, they are going to introduce a wealth of exciting new advertising models to the site. Watch out for amazing new advertising systems in the shape of paid content syndication and interactive product placement.

One thing’s for sure, this is going to be the talk of the town for a long time to come.