With the Google purchase of YouTube completed Google now provides search for the number 1 social media site (MySpace) and now owns the number two site. What will Yahoo do to counter this move?
That is a $2 billion question, as that is what it might cost Yahoo to purchase Facebook. Is $2 billion too high a price to for Yahoo to pay? Probably, but Yahoo cannot afford to concede the social networks space to Google like they have regular search engine results. So they will pay whatever it takes, which will make the Facebook investors very happy.
The one fly in the ointment might be Google. It cost them none of their $9 billion in cash to buy YouTube. What if they bought Facebook? The purchase would give them total control of the fastest growing sector of the Internet. Does Google have the killer instinct to deliver this kind of blow to Yahoo?
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