October 10, 2006 Google goes through yet another growth spurt with it’s recent acquisition of YouTube. Eric Schmidt, Chief Executive Officer of Google, justifies the $1.65 billion payment with «Our companies share similar values; we both always put our users first and are committed to innovating to improve their experience. Together, we are natural partners to offer a compelling media entertainment service to users, content owners and advertisers.» This is nothing new for Google. They have a history of buying products, software and even industries to so to integrate them and make it their own. You may remember when Google purchased SketchUp, a CAD software, not only using it to enhance Google Earth, but providing the software for free to the public. That’s pretty neat if you ask me. But what will this mean for YouTube? Google suggests that the company will remain independent of Google, keeping it’s brand recognition and retaining it’s employees. My vote is that Google will use YouTube to further enhance and market Google Video, while making use of the advertising real estate that YouTube can provide. This may actually be the last of acquisitions for a while though, as Sergey Brin, Co-Founder & President, stated that they are going to back off the mergers and acquisitions for a while to concentrate more of their efforts to the search engine itself. This is incredible news to me, as we are seeing a lot of pitfalls and downward spirals with Google’s searching capabilities as of late, and I for one would like to see a resolution.

We shall see.

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