Google Buys YouTube-Good Idea or Bad?

So Google is buying YouTube for 1.65 billion in stock. Is paying that much for a company that hasn’t made a dime another example of the Web 2.0 bubble buzz? Does this mean Eric Schmidt, Sergey Brin and Larry Page are all ”moronic” as Mark Cuban suggests?

Or is Mark Cuban nuts for not seeing the potential and that YouTube will be smooth enough of a salesman to settle the nerves of media giants, encouraging them to make deals instead of lawsuits? Partnerships with CBS, Sony BMG, and Universal music groups may just be the beginning of a lucrative long term opportunity.

Is Om Malik going to lose 40 pounds? Jenny Craig awaits.

Is Yahoo going to be left in the dust of the video sharing/social networking space?

Whether it is a good deal or not, we’ll find out in a year or two but one thing is for sure, Sequoia Capital are the ones who made out like bandits on this one. Half a billion for an 11.5 million investment. Booyah!