October 10, 2006 | In Business, Technology |
Google’s $1.65 billion acquisition of YouTube Inc. will put significant competitive pressure on the search giant’s competitors, BusinessWeek predicts.
By integrating YouTube’s wildly popular online video platform with its existing services, Google is attempting to extend its highly profitable advertising business into a new and largely untapped medium.
eMarketer expects video-based online advertising to generate revenues of $640 million this year alone, and grow to produce $1.5 billion in 2010. If Google can grab the lion’s share of this growth, it will have scored a big victory over competitors like Yahoo, Microsoft, and News Corp.
