Executive Summary (This is a document excerpt)

On October 9, 2006, Google agreed to buy user-generated video site YouTube for $1.65 billion in stock. This is a massive demonstration of the power of social computing: Google already has the No. 3 video site, but now it will own a networking platform that makes video stickier — and better for advertisers. To make this huge purchase worth it, Google must move rapidly to: 1) address the problem of users uploading copyrighted content; 2) encourage marketers to think beyond traditional video advertisements; and 3) maintain YouTube's excellent video selection and viewing experience.