On Columbus Day, 10/09/06 (a US financial market holiday), Google discovered America, Video America that is. Google announced its acquisition of video upstart, YouTube for $1.65 billion. YouTube was founded in a garage (like Apple and Google) in Feb. 2005 (about $3 million/day), just 1 year prior to the launch of Zillow.com ( Which can give you an estimate on that garage. Google just bought the garage where they started). It almost makes me want to clean out my garage.
A Wall Street Journal article on Google pointed out that, besides keyword-relevant search and search ads, little Google has done so far was done well or successfully. Three areas and examples were given where Google was having its lunch eaten: Internet Video with YouTube.com, Social Networking with MySpace.com and Blog Search with Technorati.com. (At $1.65 billion there really is no such thing as a free lunch). I postulated Zillow.com might soon eat Google's Real Estate Search lunch as well.
Now that Google has acquired YouTube is it time to add Zillow to the acquisition list?
The Microsoft playbook has been to keep out of the tech-fray's bleeding edge. Then, when the dust clears, buy the leading edge. Microsoft missed out with Internet Search and Google (Even though Microsoft was offered Google early on). But when Google was available, everyone wanted to be a portal, the next AOL, not the best search engine. Microsoft has lived to regret the day. Now Google has added another page and company to the Google Playbook, moving to corner the Internet Video Market, just as they set the standard and dominate the market for keyword-relevant search.
Zillow will soon have the ability to give an estimate (Zestimate) on over 68 million of the 83 million homes in the US. Could anything be closer or more relevant to Local Search Advertisers than to advertise on any one or every one of those site addresses? Zillow isn't there yet with its technology and business model. Google and the other online ad sellers can't deliver the relevant ads yet, either; but it's just a matter of time.
YouTube's 30% Venture Capital holder, Sequoia Capital, looks to take home to Seattle a significant financial gain. Might Zillow's VC investors; Par Capital Management of Boston and Technology Crossover Ventures and Benchmark Capital of California ($57 million investors in Zillow of Seattle) be in for their own windfall?
Is Zillow next? Will the WSJ add Zillow to Google's big 3 acquisition targets? We'll just have to wait and see. Anyone want to make a Time and Dollar Zestimate?
What impact will a Keyword-Relevant Search dominant, Internet-Video Search Dominant, Real Estate Search Dominant player have in Local Search and Real Estate Search Marketing?
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To my great surprise, this post, a throw-away in my pursuit of the definition of "Ultimate Real Estate Search" and "Ideal Real Estate Search Marketing", got picked up in posts by 2 of my favorite Real Estate Blogs, TheFutureOfRealEstateMarketing and InmanBlog. I commented on RealEstate2.x and InmanBlog (below).
Comment on Post about another reason "Why Zillow Will Fail" by Real Estate 2.0:
With the recent purchase of YouTube by Google (another media company)for $1.65 billion, ($3 million dollars/day since its start 2/05) the idea that Zillow will be around for an IPO is getting slimmer and slimmer. Google is trying to solve many problems:
1) Blog Search (Technorati)
2) Social Networking (MySpace)
3) Local Search (No one yet)
4) Real Estate Search (Zillow)
5) Internet Video (YouTube) - Done.
If Zillow could deliver a Website for every street address and Google could deliver targeted, measurable and time (stage-of-sale) relevant ads on all those sites; how much would Zillow be worth to Google then? You wouldn’t have to narrow-cast your ad to “Homes-for-Sale”, Anywhere, NY. You could micro-cast or laser-cast your ads to any or every home in any or every location, location, location.
Zillow could deliver on Google’s need for Real Estate Search and a whole other way to Local Search, by your own street-address-hooked Website. October 13th, 2006 at 8:35 pm
In a comment to a post on Inman, "Bloggers pick apart Zillow's possible long-term plans"
Does the Location, Location, Location Crowd get anything about the Traffic, Traffic, Traffic Crowd? I think not. A broker would only buy Zillow to silence it. Where are Real Estate stocks? Where is Google's stock? Name 3 Venture Capital Firms who invested in a Real Estate Company?
If you worked for the Department of Justice, would you invest your retirement dollars in Google, YouTube and Zillow; or Move.com (aka HomeStore.com), Realogy (aka Cendant) and Reator.com?
In the follow up comment to my Inman comment, jfsellsius, a well known Zillow basher, Invisable Web Advocate, Zillownoid, and NAR closed-MLS apologist even demands Zillow allow agents to violate their ethical requirements of Client Agency; and pull their listing off free advertising with the most powerful Real Estate Search Engine, Zillow, the Google of Real Estate. I thought Realtors had an ethics course, at least that's what the commercials say.
I would like to propose not to hold off until you get big sum of money to buy all you need! You can take the home loans or consolidation loans and feel fine
Posted by: HaysJanine | June 30, 2011 at 08:26 AM