The markets like it – GOOG is up $8.50.
I’m listening to the conference call. Chad Hurley is talking about the integration of Google search into YouTube and also is talking about how YT is focused on helping media companies to monetize their content.
Why YouTube when you had Google VIdeo? Eric said Google Video was doing well, but YouTube was a clear winner in the social networking side of video…
Why stock, not cash? David Drummond of Google: So as to make it tax free for the shareholders.
How large are YouTube’s costs? No comment save Eric: “they have been thrifty.”
Monetizing YouTube: In the near term and mid term what is it coming from, search or video? Eric: We don’t give guidance. We’ve come up with 20-30 places where Google tech can help. Most people believe this is just the beginning of the Internet video revolution.
What did you use to value this acquisition? We typically don’t go into that. David: We modeled it this on a “synergistic model”.
What role did copyright play in this acquisition and what steps are you taking there? YT: From the beginning we’ve always respected rights holders’ rights. We now have the resources (at YT) to continue that. David: The YT vision and commitment to enforcing copyrights – relying on the safe harbor of the DMCA – is similar to ours.
What integration might be expected in the short term? Sergey: we care very much about search – we want to include YT’s videos in that – and also we will work on the advertising solutions. There is a great deal more experimentation and trials to be done. Google Video doesn’t go away ever (Eric).
Datamining: Sergey: We have no intention to do that.
Will you keep the brand separate: Eric: Yes. It has great value.
This is the next step in the evolution of the Internet. …it’s a natural next step. (End of call)
I am mixed on this. I think it’s wise to frame this as “the companies will stay separate” kind of acquisition, even if in the end that’s not the intent. But this marks Google’s first significant “out of brand” acquisition, the company’s first true brand-management challenge. I’m not counting Blogger in here because, well, it wasn’t this big. More to come…