October 10th, 2006
The channels are full of the big news: Google has bought YouTube. And as I read the commentaries, I wonder what’s going on. We have so many opinions and most of them are on similar lines…
- Google made a stupid mistake
- Eric Schmidt is a moron
- et al.
What I find particularly missing are two core facts:
- Google’s total IQ is probably more than the GDP of some countries (it’s not my line, I read it somewhere ages ago). They don’t make stupid mistakes.
- Yahoo has been on a roll recently with some very cool, strategic buys that are pushing them hard into a challenging position and they have been making some very bold decisions to get there (eg: making yahoo mail source open).
So I ask, is this $1.65 billion purchase of YouTube more a stupid mistake by those who can do no wrong or a very capable strategic decision for a cash-rich company to deny one of its biggest rivals a fast-track into the competitive online video arena?