Reason for google buying youtube

Read this "Why else would Google buy YouTube?" - an article from Economic Times. My understanding from the article - Google would YouTube to cater to its social networking needs and blogging!

Being from the community space myself, i say - "What bull"? this is not why companies are bought. The journalist has spent some obscene time on talking about fads of today and worse still flowing with it.

Well, this is why i think Google bought YouTube:
  1. with YouTube, google acquires the customer base there.
  2. this provides them with "thought leader" position in the rich media space.
  3. Google is an internet advertising company. YouTube is a strategic fit for providing targetted ads to rich media like videos. you can already see Google ads in all of their properties that advertisers are happy to pay for!

this is in short, IMHO the reason why it was bought (things like blogs and other social media are implicit!)

This posting is provided "AS IS" with no warranties, and confers no rights.


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