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YouTube a Yahoo Takeover Target?

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YouTube a Yahoo Takeover Target?

YouTube a Yahoo Takeover Target?

CNET reports on video site phenomenon YouTube getting $8 million in new VC funding. Dare I say it: YouTube is the MySpace of the online video world, literally and figuratively.

I would argue that YouTube is precisely the kind of site that Yahoo! would love to have in its stable to jump start its video usage (some have argued usage was the rationale behind the del.icio.us acquisition). I base my speculation on nothing but logic. But with its rapid growth and new VC funding, YouTube is quickly moving beyond easy acquisition status. VCs will bet that growth will drive a bigger multiple and may hold out for some really big money.

AOL bought Truveo last year and is placing big bets on online video. I doubt that AOL will try and grab the site (in addition to Truveo it owns SingingFish). Google probably figures it can grow its own video usage organically and is an unlikely acquirer. I also don’t see Microsoft buying the site. Other than Yahoo!, more likely is a traditional media company like Viacom or Fox/News Corp.

We’ll see . . .

Related: AOL’s Jonathan Miller discusses online video (and AOL’s efforts) and predicts the Internet will likely trump TV. I agree with Miller that online video is going to be huge. In fact, as a couple of panelists said at the recent Kelsey Group conference, we’ll look back on this phase of the Internet as a quaint time when text was dominant. But rich media (audio/video) will be one of the primary ways that people consume information online. Look at how successful the NY Times has been with video and how it’s adding more and more “multimedia.”

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