The last six months have seen some consolidation of existing online companies in exchange for rather large figures. The most notable of these was Google’s acquisition of YouTube for $1.65 billion, a deal in which Google won over rivals Yahoo. YouTube claims more than 100 million videos are viewed daily on its site, making it the No.2 video site on the internet after MySpace. The industry viewed the move with a variety of opinions much of which circled around the price. Rob Enderle, principal analyst with Enderle Group said of the deal “Google paid an incredibly high price for a property that has yet to generate any appreciable profit”.
