What a week in Tech!

Wow, what a week in tech! Ending months of speculation, Google finally acquired You Tube, The Carphone Warehouse branched out and bought something for them to play with at the weekend in the shape of AOL UK, and what did Yahoo! do? Well nothing, actually. They are still dragging their heels about getting hold of Facebook.

Why are these seemingly disparate developments significant?

In brief, Google now have the eye balls of one of the most visited sites in the world. It is only a matter of time before they start applying their super successful ad model and start seeing their stock price increase even further. You have got to admire their pace when it comes to acquisitions and NPD. Can you say the same for Yahoo! at the moment?

Having already shaken up the broadband market in the UK with their successful ‘free broadband’ campaign (possibly too successful!), The Carphone Warehouse has raised the bar once again in the market by now being able to incorporate content into their broadband business model.

Free, or next to free, broadband with content included is going to be a pretty attractive proposition for consumers and will be a great platform for Carphone Warehouse to sell their core products of landline and cell phone services. BT had better watch out, Carphone Warehouse could soon be the one-stop shop for all your communication requirements.

Now on to Yahoo! I must admit I am kind of surprised at their apathy when it comes to buying Facebook. Facebook is a great concept, has a good user base, and would compliment Yahoo’s current portfolio nicely, but why are they stalling?

Yahoo! has been fairly active when it comes to acquisitions over the last 18months, with purchases that has included great products like Flickr and Delicious, but they have lacked a truly massive purchase like You Tube or MySpace. Facebook would offer them something along these lines.

I appreciate that $1million is a big price tag, but I think the negative impact on their stock price is making the price look pretty small. I think it would be almost worth them just getting hold of Facebook and let the tech media find an alternative avenue to sink their teeth into. Yahoo! can then come back and surprise everyone at a later date with a cool product and regain their credibility for being what they really are – a great company!

Even with this in mind, I go back to what I said at the start of this post. Why are these developments significant?

Well, they all one way or another have the potential to change the face of tech for the foreseeable future.

BT could loose even more influence in the market with the actions of Carphone Warehouse. Google has reinforced its dominant reputation in the market by buying You Tube and seriously exposing Yahoo’s ‘oil tanker’ like mentality to business deals.

I am confident that Yahoo! will bounce back but it has definitely taken a few powerful blows by not buying Facebook and letting Google hog the limelight. Could this be the knockout punch?

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One Response to “What a week in Tech!”

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