Friday, October 06, 2006

Google To Buy YouTube? Just The First In A Wave Of Web 2.0 Mergers and Acquisitions To Come

TechCrunch's Michael Arrington and The Wall Street Journal report that search engine giant YouTube and Google are in talks where the latter will buy the former for $1.6 billion.

If this deal is consumated, my prediction is it will cause a wave of mergers and acquistions between "Web 2.0" companies, particularly those which are video distributors. The number of video distribution companies seems to grow each week; my view is that we will have 140 by this time net year.

That would happen even with the wave, but I don't see that process accelerating until late 2007.