IP & Democracy has a post responding to Mark Cuban’s latest YouTube slam. Here’s the part of IP & Democracy’s post I found interesting:
Mark Cuban is obsessed with dumping on the idea that YouTube might be worth billions of dollars. He publicly labeled any serious prospective buyer of the site a “moron,” but then along came word that Google, founded by two certified geniuses, is interested in paying $1.6 billion for the video sharing supernova.
While I won’t quarrel that the Google guys are geniuses, at least in hindsight, anyone who has followed Google lately would be hard pressed to argue that Google is the gold standard of spending money wisely.
In fact, Google has been throwing money in all corners looking for the next big thing. So far, we’re still waiting.
It’s no wonder that Google may be considering making a big play to buy YouTube and its vast advertising space. While I’m still waiting for a YouTube business plan that makes long-term sense, Google has either decided to become or been relegated to an advertising agency.
Given that happy or sad fact (depending on your perspective), a YouTube acquisition is not surprising. Note that I said it was not surprising- I did not say it makes sense.
Whether it makes sense or not depends on whether you believe the entire universe can subsist on ad dollars. Anyone who has read this blog for more than a day or two knows that I do not believe that it can.
But if I’m wrong, it could be a good acquisition for Google.
I just hope it isn’t a short-term plan to ride the ad hype for a few more quarters while Google waits anxiously for more lightning, bottle in hand.
If I were a Google shareholder, that’s what I’d be worried about.
Newsome.Org 