Re: Acquisitions: Google/YouTube, what do you think of the deal?

From: Simon Rolfe <ideas_at_creativegenius.ca>
Date: Wed 11 Oct 2006 22:29:34 -0500

Greetings All:)

All very valid points being made with respect to the Google acquisition
of YouTube.

But what Google has really purchased with the acquisition of YouTube is
an audience.

Does YouTube have a superior product, NO! ... But what they do have is a
developed, loyal and repeat audience.

Google, through the power of other peoples money, has been able to
harness access to a HUGE audience (and more importantly, to a repeat
audience at that).

By deploying Google Ad Words and the like throughout YouTube, Google has
purchased itself an advantage as well as a larger portion of the
distribution channel (and that, after all, is where the most value can
be leveraged longer term).

Look past the the actual acquisition of YouTube for just a moment and
think about the dollar value of the PR and News coverage this
acquisition has generated (on a Worldwide scale) and tell me that is not
worth the 1+Billion Google 'paid' for You Tube. Both the Google name and
all of Google's existing products have benefited as have their
shareholders.

Think also of how powerful harnessing the YouTube audience really is
from an advertising perspective, both now and as the WWW begins to
evolve more and more into an entertainment and information medium with a
power and a reach so large it will simply dwarf the reach of any single
television station that currently exists; - if you do this, the real
value of this acquisition (and its implications) become far more clear.

Google may have got its start as a humble search engine ... but the
company it will become, will be like nothing we have seen before - if
they are careful and play their cards correctly.

Google is positioning itself to become a 'World Power' in Media, by
reshaping Media itself and they way we ALL elect to receive our
entertainment and information moving forward.

Just my view from here.


Simon Rolfe, Senior Partner
Creative Genius Communications Inc.
ideas_at_creativegenius.ca
www.creativegenius.ca
(613) 830-4208
        






Received on Wed Oct 11 2006 - 22:29:34 CDT