Google might buy YouTube for $2.1 Billion

October 8, 2006

Google might buy YouTube for $2.1 Billion

I just read on the ShoeMoney blog that Google has made an offer of $2.1 Billion to aquire the popular video website YouTube.

Very interesting... They apparently think that YouTube is nice virtual real estate - Google recently made a $900 million deal to display AdSense ads on YouTube. So they'll be saving some money if the deal goes through.

If Google aquires YouTube they'll definitely replace the video player with the player from Google Video.

But is YouTube really that good for AdSense ads? Since the majority of the content is video (and a short description + some comments from users) it's hard to get related ads - usually when I'm on YouTube I don't see any highly targeted ads. It's often just some general entertainment ads or "AdSense arbitrage / click flipping" ads. But I don't doubt that Google knows what they're doing - they have all the stats...

I'm just wondering if the people that visit YouTube will just click any link that looks slightly interesting - and then just back out if the landing page doesn't grab them? Is that good for AdWords advertisers? Does YouTube bring you good prospects or do AdWords advertisers just have to create better targeted ad campaigns and better landing pages?

Update: It's official - Google To Acquire YouTube for $1.65 Billion in Stock

Tags: Google, YouTube, AdWords, AdSense, advertising