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How Should Microsoft Compete With Google Against Youtube In The Long Run?

|Includes: MSFT, Nokia Corporation (NOK)

Microsoft has created/acquired a competing (& compelling) product for each of Google's offerings, except for Youtube. I don't understand why Microsoft doesn't act to create a rival for Youtube. Youtube is probably the most important product of Google and a monopoly of internet broadcasting, which is the future. Any sane company will not leave the ground empty for its competitor to own.

My suggestion for MSFT would be to acquire Vimeo & Dailymotion and then combine both of them under Vimeo brand. Vimeo is an awesome video viewing site with less clutter. MSFT can position it against Youtube and it has resources to do so. It will again be a fight similar to Bing vs. Google, a strategic play. But it will be worth it.

Disclosure: I am long NOK.