Google is buying video-sharing website YouTube for $1.65bn (£883m) in shares. So is this is a gamble or a winning investment?
Is this the best business model for an internet start-up? Have a clever idea, build a large audience while burning through lots of money, and wait to be bought by Google?
No matter how you look at it, you have to admit Google really did get a bargain with Youtube.com. Its now a corner stone of the web.
Funny enough further in the same piece…
YouTube is not MySpace
A few months ago the number of YouTube users overtook that of the web’s other great networking site, MySpace. Last year, MySpace was snapped up by old media giant Rupert Murdoch and his News Corporation for $580m. This, though, is not about who paid more for how many eyeballs. It’s about the underlying dynamics.
Thats pretty funny with the current state of Myspace