The deal is a good move for Google, said analyst Aram Sinnreich, founder and managing partner with Radar Research LLC, a Los
Angeles technology and media research firm.
"$1.65 billion is certainly a lot, but for a company like Google who will be using it as part of an integrated cross-media
advertising strategy it may actually pay off," said Aram Sinnreich. "There aren't a whole lot of companies left to acquire
with this kind of reach online," he added.
Analysts also noted the similarities between the corporate cultures and how the companies developed and have grown. "Google
has become a huge brand without advertising -- same with YouTube," said David Hallerman, a senior analyst at Emarketer in
New York.
Because YouTube has registered users, Google over time will know more about user behavior, which will enable the company to
target advertising, he said.
Although Google executives adamantly said otherwise, Hallerman doesn't think there is a future in the YouTube brand name.
"YouTube is a silly name," he said. "Google will get rid of it over time."
(Agam Shah and Robert McMillan in San Francisco contributed to this report.)
E-mail
Printer Friendly
Reprints
(InfoWorld) - In the litigious world we live in, deploying a unified communications platform in your enterprise could...
