One Fewer (Potential) Big Internet Media Company to Kick Around

Welcome to new media, it’s just like…no, wait. It’s still like new media. One more of the last, most desirable Internet media companies gets bought by another. Some day, old media will catch on. (Other than Time Warner and News Corp., that is.)

Google Inc. snapped up YouTube Inc. for $1.65 billion Monday in deal that catapults the Internet search leader to a leading role in the online video revolution….The all-stock acquisition unites one of the Internet’s marquee companies with one of its rapidly rising stars.

Wow. All stock. Yahoo couldn’ta contended. Maybe even Microsoft couldn’t. Certainly the old dinosaurs couldn’t.

Why this is probably a good match:

– Google can sell ads
– Google can experiment with richer ad formats

Why this is still tricky:

– Google can’t program (not C++, content) yet
– Google is still learning how to deal with brand advertisers (they’re learning fast)
– Google is still learning how to deal with media companies (little slower on this front)

Super potential here. I’ll link to the Understanding Google report again.