adsense

I'm not so sure it was a good move - I did some quick math and the way I figure it, it will take a long time for Google to recover their investment.

They paid $1,600,000,000 for youtube

If you make 20 cents per click (high), it will take 8 billion (8,000,000,000) clickthroughs to recover your initial investment. If you assume (guess) that youtube gets 1 million daily ad clickthroughs (unlikely), it will take 8,000 days or 22 years to make their money back.

And thats just the investment - they also have to run the site which costs lots of money, thus making it many many more years to recover their investment.

I would think they have other revenue plans or else it was an extremely bad move.

neil

They are not mad and ofcourse they must be having some ways of earning money off youtube . Google is smart and they know what they have purchased and at what price

arpitagarwal82

YouTube was the biggest competitor of gogole videos, a service of google. I think by buying youtube, google has slashed down a competitor. Now in the field of online videos, Google is a sole King.

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ahsan16

I think this is a good point but I think also that there is something more in googles mind other than that

CristianR

not only that , but take into consideration the fact that google is currently developing its video ads , maybe a combination between youtube and ads , who knows

dasha101

Google made this move to their advantage. Youtube is very popular compared to their google videos. I think google had made a great move on buying you tube.

Jerlene

It's a good move for revenue because of the great traffic but it was also a stupid move because of the countless law suits.

Jed

I think Google is trying to match Yahoo with its wide network of sites and not just focus on being the top search engine.

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rlineker

Google might ad advertisments that you have to watch before you can atch a video on youtube. Like on AOL Music. Then they will amke their money back easily.

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3prince

google can never match with yahoo... because in a short time span they managed to bring a reveloution in the net industry