Google buys YouTube.com

October 9th, 2006 • Related • Filed Under
Not that it really matters to me, but Google announced the acquisition of YouTube.com today. YouTube.com is a large video hosting website on the Internet. Google was already the main advertising provider on YouTube.com in the past and I assume that insider knowledge helped to seal the deal. Google already new the income potential of YouTube.com before even talking to YouTube.com and making them an offer. Another interesting fact to know is, that over the past few years Google.com is buying “dark fiber” all across the world. Dark fiber is a term for unused fiber data connections. Fiber was put into the ground during the crazy dot com bubble days by telecom companies like Quest, Level 3, Sprint, WorldCom, and many many more. There is more fiber available than there will ever be demand for it. I should probably not say it this way - somebody will prove me wrong soon on the use of fiber and the demand for it. Anyway - Google will sooner or later have the bandwidth cost under their own control and can push out video content easily at much reduced cost compared to any other company. It is a smart move to buy YouTube.com so early in the game.
Microsoft and Yahoo will have problems catching up when it comes to provide content and to have the right infrastructure in place. Google’s strategic moves seem to be impossible to follow. We will see how this turns out.

There Is 1 Response So Far. »

  1. Comment by ARLAN DEAN on 10 October 2006:

    Can anybody spell “Strategy”? Big time. Long term!

    With Google sitting on large amounts of (currently) empty glass infrastructure, they’re positioning themselves to be the next decade’s media giant. Very shrewd indeed.

    Video Blogging anyone?