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Google's YouTube Gambit

Stock quotes in this article: GOOG , YHOO , MSFT , EXPE , TWX  

Editor's Note: The following is a guest column by Roy Shkedi, CEO and Founder of Almondnet, a New York-based media and advertising technology company. The views expressed in this article are his own. TheStreet.com accepts unsolicited manuscripts but will only respond to those it considers publishing. If you would like to submit a column for consideration, please email comment@thestreet.com.

In the wake of Google's (GOOG Quote) $1.65 billion acquisition of YouTube, many observers have questioned whether the acquisition price can be justified, citing the following uncertainties:

  • The number of advertisement impressions that potentially could be delivered over YouTube.
  • The CPM (cost per thousand) such advertisements could fetch, considering that YouTube's entertainment-related content typically receives lower advertising prices than more lucrative categories such as automotive, travel and finance.
  • ...

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