They Haven’t Bought YouTube Yet!
Whenever one company announces an agreement to buy another, many places speak about the deal as if it’s already happened, at least in the headlines. The latest example of this? Why of course the Google/YouTube transaction, which hasn’t happened yet! Marketwatch got the title right: Google to buy YouTube for $1.65 billion in stock
Here is a sampling of some incorrect headlines from Google News:
- YouTube sold for $1.65 billion
- Google grabs YouTube
- Google buys YouTube in $1.65 bn deal
- Google buys YouTube
The blogosphere isn’t any better here. Here is a random sampling of articles from my Google Reader feeds:
- Google Buys YouTube for $1.65 Billion
- Google buys video-sharing site YouTube for $1.65 billion
- Done deal, Google and YouTube
- Google acquires YouTube
- Google buys YouTube
Note I didn’t select any of the above to pick on them specifically, but to provide examples of how many, many people make this mistake. I wouldn’t doubt that I’ve made this mistake too.
One company buying another is a bit like buying a house–something I may be going through here very soon. Google has essentially given YouTube a Letter of Intent saying “we’ll buy you for $1.65 billion dollars” subject to a number of conditions. YouTube has basically said “Ok.” Now there’s a lot of paperwork to do, including securing the money (or stock) along with getting the necessary approvals. In the Google/YouTube transaction, the US Government has to approve too.
The house isn’t bought until you get the keys. Google doesn’t have the keys to YouTube yet. Let’s not speak like they do.
