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Mobile operators get fixed price spectrum renewal in $3b Government windfall

The Government has offered Australia's three mobile operators, and vividwireless, renewal of their existing spectrum allocated on 15 year licences in the late 90s and early 2000s at set prices, while the Government expects to rake in $3 billion.

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Google and YouTube a $1.65b match made in heaven

Your IT - Home IT



"Anyone who has followed my 'How to avoid acquisition indigestion' lessons over the last 20 years will know why:

"1 - Google and Youtube share the same DNA. Google brought the internet to life for many people. Youtube has brought video sharing to the masses. Both rely on search. This would be one of the best strategic acquisitions we could imagine.

"2 - Video and social networking is BIG. Google knows that to retain its lead (and its associated advertising revenues) in search it has to lead in video too. Google Video has been a bit of a flop. The leader by a country mile is Youtube.

"3 - A Google/Youtube marriage will result in the most visited websites in the world - overtaking Yahoo and MSN. How could any advertiser then resist?

"4 - The $1.5m a month costs of hosting the Youtube site is big bucks for Youtube but is pocket money for Google. Indeed, the $1.6bn purchase price is little more than 1% of Google's $126bn market valuation. Youtube has just 25 employees. No indigestion here then!

"5 - Youtube needs Google for its revenue generating expertise.

"6 - The 'shared DNA' point is made richer when you consider that Sequoia Capital was an investor in both companies - lucky them!"

According to Holway, with Google in the picture copyright holders would think long and hard about suing YouTube because of the search giant's considerable resources.

Anyway, newly announced partnerships with Universal Music Group, Sony BMG Music Entertainment and CBS to allow artists' music and videos to be included in original content posted on YouTube's site, the likelihood a lawsuits is diminishing. The new deals come on the back of deals already signed previously with Warner Bros and NBC.

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