Traffic, qualified traffic is everything! Google latest move is a consideration of YouTube for $1.6 billion dollars. Why is it that these incredibly large, profitable, and intellectually prominent corporations are spending billions on acquisitions instead of creating their own products?

Simple. One word: Loyalty to a service and traffic.

YouTube has million of users whom are loyal to the product, enjoy the interface, and love the executive team. Yes… A 29 year old visionary who understand usability and giving the user what they want. Simple formula.

Would you pay $1.7 billion for YourTube? I would. It’s a steal. Millions of users equals millions of clicks and views. Put that on a proprietary network owned by Google and you have a bigger cash cow. Why make YouTube an affiliate and pay them 50% of a click, when you can buy them outright and take home 100% of the bid, view, impression and action of every user and advertiser. just like Mr. Murdoch “stole” MySpace for a mere $800 million, the same will happen to YouTube.