Google-Youtube deal announced

Google announced its acquisition of Youtube after the market closed today in a stock purchase valued at $1.65 billion. I’ve outlined why I thought this is a good purchase for all parties involved in the previous post.

The fallout with this purchase is that Yahoo will most likely speed up its courtship of Facebook, which is the next biggest Web 2.0 site that is available on the market. The Google-Youtube deal, however, does give Facebook more leverage in its negotiations with all suiters. Expect Yahoo to announce its purchase of Facebook soon, and at a higher price than the $1 billion that has been mentioned recently.

Google – Youtube. A good deal?

There is rampant speculation that Google is close to buying Youtube. Let’s take a look at whether this is a good deal from 3 respects: Google, Youtube, and users.

Google

1. This acquisition will instantly make Google the #1 player in online video, currently the hot trend on the internet. Outside of search, Google really doesn’t have any product that it can claim to be #1 in its category. Getting Youtube will change this.

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Number of Browser Bugs

According to Symantec’s twice-yearly Internet Security Threat Report, the number of bugs found by browser during the first 6 months of this year is as follows:

Mozilla browsers: 47
Internet Explorer: 38
Safari: 12
Opera: 7

Interesting that Mozilla browsers had more bugs than IE. I wonder if it’s because Mozilla is gaining in popularity, or if Microsoft is actually doing a better job in designing more secure software? Also, reading this report made me go download Opera right away. :)

To view the entire report, please click here.

eBay buys Skype

eBay is buying Skype, the up-and-coming VoIP player for between $2.6 and $4.1 billion, depending on Skype’s future financial performance.

Very interesting combination. And it looks odd. But, if you compare this with Yahoo’s deal with Alibaba.com, there are actually similarities. In combining Alibaba’s ecommerce platform with Yahoo’s Messenger/Mail/Search capabilities, the new Alibaba entity created China’s first internet player with capabilities in ecommerce, communications, and search. eBay dominates many countries in Auctions, and getting Skype is one step in a possible road to full competition with the likes of Yahoo, MSN, and possibly Google.