Facebook, Google or Yahoo ?

Three months ago Google bought Youtube the video sharing community for 1.65 billion dollars. But why did Google buy Youtube for such a large amount ? Well first of all simply because Youtube is one of the most visited and fastest growing website on the net. Google saw the possibility with Youtube to reach hundred of thousands of people. It was also a great opportunity to have a platform where they could use their well known advertising system “Google ads”. Another reason for this acquisition was to eliminate competition and especially Yahoo. This acquisition was really bad news for Yahoo which had recently launched its Yahoo ads. Yahoo is currently struggling updating its advertising system and making a commercial deal with frequently visited websites such as Youtube without Google swooping in.

For the moment most of the companies courted by Yahoo (MySpace, AOL, Youtube) found an agreement with Google. As explained in a recent article of the Times (UK), Yahoo only have $4 billion cash available whereas Google have at least $11 billion ! Maybe the solution for Yahoo to make a “come back” would be to acquire the well known “Facebook” social network platform. Yahoo have already made an offer of $900 million in September 2006, but it was refused due to the protesting of Facebook users (students). Apparantly Facebook founder Mark Zuckerberg would be ready to sell Facebook for at least $2 billion. All in all, if Yahoo wants to acquire Facebook and come back in the race with Google, they will need to bring real money and hope that Google wont come with an enormous offer !