I don't normally make comments on general happenings in the industry, especially negative ones, but I can't help myself on this.

OK, so everyone knows that Google went and paid more than the GDP of some small nations for YouTube. The question I'm still asking myself some days later is why?

I mean, seriously, where's the payback? How on Earth are these guys going to recover that much money in 2 years or less. Why 2 years - because that'll be about how long Gen-Y's attention span lasts before it switches onto some other instant fame fad. And it'll be about that long before the lawsuits start getting decided.

I can imagine that right now the copyright holders for music videos, ads, and movies are all going through YouTube looking for their works, and getting their lawyers amped up and ready to sue. Previosly YouTube had little money and weren't a real lawsuit target but now that they're Googled they'll be rolling in it. They're a rich target, and rich targets end up getting sued.

So why would you buy YouTube? I just can't seem to get my head around it. Surely it's not so that they're "cool", or to stop someone else buying them.

More and more Google are moving away from their core business of search (and advertising) and getting into other areas where they don't have core strengths. They're self proclaimed air of superiority, uber-coolness and the "we're smarter than the rest of you muggles" attitude (as so eloquently expressed by the walking rant machine and flame-bait Steve Yegge) is starting to get tired and wear a bit thin. It's a slippery slope Google are walking on it's likely to end with a fall.

If I had Google stock I'd be thinking about cashing in now while the going's good.


Update: A post on J.LeRoys blog covers similar territory, but looking at Yahoo losing their identity instead of Google.