WhoTube?

Could I resist commenting on Google buying the 20-month old IP video toddler? No, of course not.
$1.65 billion, probably not that bad a deal in the end, though it is somewhat galling that 'value' can be created so easily. That seems to be the underlying meme of the naysayers in this drama. 'How can YouTube possibly be worth $1.65 billion, after 20 months!'
Well, we live in interesting times, and if you had a TV or a radio station go from nowhere to being the leading station in the US, after 20 months in existence, say 20 years ago, what would the price have been?
Google's figures, and just about every single report/statistic, show that advertising revenue is moving online at a frightening pace. YouTube is just a media channel, but it has become synonymous with online video. That's worth a lot.
There's also the $900 million that Google paid to MySpace. These deals are becoming more expensive all the time, why not get the station while you can!

I was sceptical of the value of Ebays acquisition of Skype, yet no other company has managed to dent Skype's growth significantly. Branding, and first mover advantage seem to have more effect on the internet than I would have expected. I suspect this is due to the immaturity of the market. Once people have a solution, they don't look further, that will start to change over time, but not as quick as tech-savvy people (or I) would expect.

YouTube (and Skype) have a significant lifespan in them. Google have to be where the eyeballs are and over the lifespan, this probably saves money for Google.

The legal issues? Well, perhaps they'll have to shut it down, but not for some time yet.
In the meantime, Surf's up and Google just caught a wave...