More than a few people have been asking us about Google's acquisition of YouTube.com lately. $1.65 billion is a lot to pay for an 18 month old company with little revenue. Our answer? Google needs content to sell ads, and Google has a lot of money. A hyper growth website like YouTube.com reached 30 million+ visitors per month and has content is just what a online ad seller needs. You can debate the price but not the reasoning. However, it's also not uncommon to price a website by multiplying the yearly visitors by $5 to arrive at a purchase price. Using that, Google actually got a deal because the price should be $1.8 billion.

In any case, Google can afford it. Today they announced another record quarter. they almost doubled their gross from the year before quarter. No small feat when all the words after the numbers start with a B, like from $1.58 billion to $2.69 billion in revenue.

So like I've said to others, they can afford it. If they had to write the whole thing off, it would be less than what they net in a couple of quarters...now. By next year, it might be what they net in one quarter.

So why does Google keep growing this fast? Online search ads work really well.