Google’s Fourth Mega Deal: Sign Of The Bubble?

By Nathan Weinberg

If you put all the pieces together in your head, you’ll realize that Google’s purchase of YouTube, while its largest and most dramatic deal, isn’t the first huge one they’ve made. Luckily, Tristan Louis has compiled all the important Web 2.0 deals in a single page, letting you compare the cash involved, so you can see just how much damn money has been spent. Philipp takes the list and orders it by cash involved, letting you see where the big spenders are.

Here’s the four amazing numbers from Google’s previous 10 months:

Wow. $4.5 billion (in theory) paid out over 10 months. Google is no pushover. They are fighting, they are determined, and they are putting every damn dollar where their mouth is. I just hope the money is well-spent. Lots of companies spent wildly to be #1, and they aren’t around anymore.

As an aside: Congrats to Tristan for topping TechMeme. He’s very cool, and I wish he blogged more often, but every time he does it’s worth the wait. Get the feed here.

So, is this a sign of a second bubble? Nope. Tristan’s numbers clearly show that such mega-deals are unpopular and rare; the typical deal is $10-30 million for a popular property like del.icio.us or Flickr. What it does show is that Google is making deals no one else is willing to make. That is either going to be the reason Google wins, or the reason they collapse spectacularly.

Posted:
October 11, 2006 by Nathan Weinberg in:
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