British Sky Broadcasting -- more commonly known as BSkyB -- and Google
The deal makes perfect sense until one realizes that News Corp.
Why is that odd? Well, News Corp. also owns MySpace. Over the past year, MySpace has cashed in on its popularity as a social-networking site to roll out its own video-sharing features. It's now second to YouTube on that front and makes it peculiar that BSkyB would choose to strengthen a News Corp. rival.
Then again, perhaps it's another example of just how powerful Google has become these days. Over the summer, MySpace turned to Google to populate its busy site with paid-search ads. It was easy for Google to emerge as the top bidder, because it just happens to run the most lucrative online advertising business. The same argument can be made here. BSkyB may stand to make more money by going with the Gmail wrapper for its email service and YouTube for the backbone of its own viral video offering.
It's not personal. It's not even business. It's just logical.
Longtime Fool contributor Rick Munarriz is a "clip culture" junkie. He does not own shares in any of the companies in this story. He is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early. The Fool has a disclosure policy.
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