[Tig] Google buys Youtube

Bob Friesenhahn bfriesen at simple.dallas.tx.us
Tue Oct 10 16:40:43 BST 2006

On Tue, 10 Oct 2006, Dick Hobbs wrote:
> Maybe I am just a foolish old man, but I am confused by Google's purchase of 
> YouTube, and indeed by YouTube itself.
> First, where is the business case? How will Google get any return on its 
> investment of $1.65 billion? That, even today, is a very large sum of money 
> indeed for a business which does not generate any real income.

Now that I have visited YouTube to see what it is, it seems that your 
confusion is warranted.  Many similar large investments have been 
entirely wasted.  Remember that AOL purchased Time Warner a number of 
years ago.  But maybe the announcement to this list did not interpret 
Google's intentions correctly and Google does have a reasonable plan 
for this service.

It looks to me like Google is planning on this service to be an 
adjunct to its Gmail email service and its instant messaging service. 
Delivery of high definition program content is not its focus.

Bob Friesenhahn
bfriesen at simple.dallas.tx.us, http://www.simplesystems.org/users/bfriesen/
GraphicsMagick Maintainer,    http://www.GraphicsMagick.org/

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