this post was submitted on 13 Aug 2024
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I'd guess it would be a vertical breakup rather than horizontal: separate android, cloud, youtube, search, chrome, ads...depending on how aggressive they want to be.
If you seperate Youtube from Google, I cannot see youtube surviving. It's probably a loss leader for them.
I really don't understand why people have that believe. They've heard over a decade ago that Youtube wasn't making a profit (which was mostly because they reinvested everything to grow and become the monopoly they are now), but by how much money it's raking in every quarter and with how monumental Google's infrastucture is, I find it extremely hard to believe Youtube isn't a big money machine by now. They're really squeezing everything out of it not because they have to, but because they have a monopoly as a user generated video platform that has more to offer than just shorts.
I think it's a combination of the old news, how expensive hosting video is compared to anything else, and how Twitch is basically a boat - a hole in the water that you throw money into.
People lose the connection that burning money like it's going out of fashion is only step one in the game. Step two is capitalizing on the market share that you acquired in step one. And, as every social media company has shown, ad revenue and data harvesting are very profitable. Otherwise, every tech giant wouldn't have pivoted to that years ago.