Tuesday, October 10, 2006

Google buys YouTube

Google has paid $1.65B to buy YouTube. Good for YouTube! Now I wonder if they will shut down Google Video, or will just operate competing products. I'm guessing they will let dev teams work on competing products.

What does it mean when a company has multiple divisions doing the same work? One the one hand, there is surely duplication of effort, and some wasted resources. I don't know how big the dev teams are on Google's video products, but I'm guessing that they are quite small, less than 50 people, so maybe this effect is small. On the other hand, perhaps the competition will spur each team to work harder, just as competition between firms does. Or maybe the teams will work less hard -- certainly their employer no longer cares which system wins.


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