Sufiy

GoogTube Would Be Most Expensive, Defensive and Riskiest Acquisiton Ever

I am looking on all this from investment perspective. Don't you think that with 32 mil unique customers to pay usd50 per head/data entry point is too much?

You are right that there is "Information Arms Race" and like in every tough competition companies are pushed into wrong investment decisions as they found themselves at the peak of business cycle. This is how bubbles are created: they are acting like "...revenue is secondary" it is important to survive and they are increasing capacity just before the period of economic contraction. Here we have very questionable deal even from the point of investment utilisation/increasing capacity: I can not see any middle term substantial revenue for Google from YouTube conbination. We will see this point in coming earnings release from Google I think we will witness further FCF contraction and stock price will drop accordingly. I will try to estimate full earnings for 2006 based on latest PWC report (note growth in online advertising is slowing dramatically in coming years)

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