/// How to Spend a Billion-Plus on User-Generated Content, Google Edition

May 19, 2013  |  All Things Digital


Super-charged growth? Yup. Fueled by user-generated content that comes with potential copyright headaches? Got it! Barely there revenues? Of course! Billion-dollar-plus price tag? Check! Yes, all of that describes the Yahoo-Tumblr deal. And it also describes Google’s move to buy YouTube in the fall of 2006. Which doesn’t mean the two deals are parallel, of course. For starters, the $1.6 billion Google spent on YouTube was a drop in the bucket for the search engine. But $1.1 billion is spending is a very big chunk of Yahoo’s cash pile. And even back in 2006, it was clear that video would be a crucial part of the Web. You can’t use the same certainty when you talk about cat GIFs. More important is that then and now, Google viewed YouTube as a nice complement to its core business, which has never flagged. For Marissa Mayer, it’s a crucial part of her strategy to bring new eyeballs to a faded brand. Still! Fun to compare and contrast.

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How to Spend a Billion-Plus on User-Generated Content, Google Edition


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