google buys youtube

As you've probably read just about everywhere, Google has bought Youtube for $1.65 Billion in stock. Murdoch spent $580 million on MySpace in July 2005. Hmmm...

I have to agree with Ian at CubicGarden who reckons the deal makes little, if any, difference to you and I.

But what is interesting is that Google recently signed a $900 million deal to serve up ads on myspace. YouTube recently overtook MySpace, according to the Guardian. So let's, just for fun, say that MySpace is worth $580 million (price at purchase) + it's google ads deal ($900 million) = 1.48 billion. That's less than the google + youtube deal where, it should be noted, google will now get all the revenue from ad spend rather than sharing it. Good deal for google so long as ad spend on youtube maintains it's current level or grows.

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