Google Acquires YouTube

October 9, 2006

Its official. Google has acquired Youtube in a $1.65 billion stock-for-stock deal. The company had a analyst call today at 1.30pm PST. The webcast is available at

It will be interesting to watch how Google Video and YouTube will be integrated. This acquisition also means that Google will possibly increase its emphasis on Video ads by pitching it more to advertisers. They will have 4 times more inventory than before (based on Google and YouTube market share).


Pay Per Call

October 9, 2006

Ingenio signed a deal with MSN yesterday to place pay-per-call ads on MSN search service for mobile devices. Ingenio’s service enables advertisers to set-up pay-per-call ads. A pay-per-call ad is one where the user is connected to the call center rep when he clicks on the ad.
With this deal, Ingenio seems to be strengthening its presence in the pay-per-call market. It already has a deal with Google and AOL (AOL’s search service is powered by Google).

The biggest potential for pay-per-call would be in the mobile devices market. For search through mobile devices, a pay-per-call model is likely to be much more effective than a pay-per-click model. Search or internet surfing on Mobile devices happen in an entirely different context when compared to search on a PC. Many searches will be geo-centric (restaraunts in a particular area) and making a call (reservations, are you guys open now?) is an easier option than peering at content on a small screen.

Google and YouTube

October 9, 2006

With the impending $1.6 billion acquisition of YouTube, Google is set to become the biggest behemoth in the online video space. TechCrunch and NY Times has reported that the deal may be announced tonite. Google video now has a 10% share while YouTube has a 46% share. If the deal goes through, Google will have a 56% share of the online video market. Should this not raise potetial anti-trust concerns?
Reed Hundt, the ex-chairman of the FCC, gave a talk in the bay area last week where he mentioned that goverment is following an unstated and implicit policy of allowing large merger deals (the likes of AT&T and SBC) to go through. In this environment, I would not be surprised if Google will grow to be as big and dominant in a few years as Microsoft used to be.