News: Google VP of Product Management Salar Kamangar announced on Google’s blog more details about the acquisition of YouTube. Although YouTube will remain a separate company, it will integrate some of Google’s search and Ad Sense features:
“YouTube, as we’ve stated previously, will remain an independent subsidiary of Google, and will continue to operate separately. Google will support YouTube by providing access to search and monetization platforms and, when/where YouTube launches internationally, to international resources. YouTube co-founders Chad Hurley and Steve Chen and the rest of the YouTube team will continue to innovate exciting new ways for people to “broadcast themselves.”
“Earlier this week, we announced one example of innovation in monetization and distribution with a new AdSense video test. We’ll be working with a wide set of content providers, grouping together high quality video content from providers with high quality ads and offering them as playlists which publishers can select from and display on their AdSense sites. (There’s more about the test on the AdSense blog.)”
Analysis: From a business standpoint, I like the corporate separation between YouTube and Google. The separate identities will allow each to do what it does best. I think it becomes harder to innovate when companies become bloated from acquisitions that are folded into one large company.