There is a lot out there on the big news of the day, Google acquiring YouTube. Most imply that Google paid up and that the deal was fairly priced. I am contrarian on this one. I think Google got a really good deal.
Compare Google to YouTube. YouTube does 100M views a day, most of those are through links people put on blogs and send to each other but some of them are search results from YouTube's page. Actually all views can be considered search results even though what orignated them many not be actual searches. They serve the result, effectively. So each view on YouTube is the analog of a search on Google. What does Google do per day? Google does a little less than 100M searches per day, see here. So Google is doubling their daily searches with this acquisition.
And they have the potential to be higher quality searches. They may not be monetized today, but tomorrow they can be, and arguably there are better ways to put ads in video and get much higher CPMs (TV is $10-20 vs. <$1 on the Internet) So clearly video ads are worth more.
And here is the best part in my view. Google gave up a little more than 1% of their company to get as many 'searches' as they have today with better monetization potential.
That's sounds like a great deal for both sides. Congrats to all involved.