Google Video was supposed to change the internet, creating a new market for downloadable, purchasable videos. More importantly, Google Video was supposed to prove that Google is not just a one-trick search pony.

But yesterday, I got a short e-mail from Google announcing that the Google Video marketplace is closing, and that I will not longer be able to play the videos I purchased or rented from Google after August 15, 2007. A $5 bonus, for my previously purchased videos, was also included, although this bonus expires in a short 60 days.

In short, Google Video failed. It’s kind of amazing when you think about it…Google employs 10,000 of the greatest minds worldwide, yet these resources were bested in the video space by startup YouTube and the company’s two, young founders. Not only that, but Google was forced to pay $1.6 billion for YouTube in order to stay relevant in the web video space…a sign that the company is failing to remain competitive with solutions developed in-house.

The problem is that Google is starting to become a Web 2.0 conglomerate…snapping up startups at a rate that would make Larry Ellison jealous. Which is fine, but again raises the question…what the f are Google’s employees doing over there in Mountain View? Aren’t these super smart phds supposed to be making their own content?

A more interesting question focuses on Google’s pedigree itself. The company arrogantly snubs its nose at 98′% of the workforce, concentrating instead on the cream of the crop, from cream of the crop institutions. But for all their smarts, these folks could not predict that Americans would flock in droves to see a cat play the piano. It seems almost predictable that Google’s refusal to hire from the mainstream makes the company unable to develop content for the mainstream.

This all brings us back to square one with Google. Can they do anything other than search? And if not, are they really worth $160 billion?

What does this mean for consumers?  I think the possibility of better service is on the horizon, also the ability to get more integration into email is probably good.  I wonder if this acquisition a part of the Google Phone initiative, it would make sense since the ability to integrate voicemail, roaming, email and all those other great features into cell service.  Come on Google, show us the device!

At the All Things Digital Conference, Eric Schmidt mentioned a little about Google’s cell phone plans.  He mentioned that Google is working with several carriers to create applications that utilize mobile Internet.  He mentioned that a major hurdle has been trying to get different apps to work with a variety of cell phones.  Google even explored the idea of having an Asian manufacture integrate all the apps into one handset.

I wonder if these comments have anything to do with Google developing their own Ubuntu distribution, maybe its possible that Google is looking to use Linux as the basis for the OS?

Robert X Cringely on his PBS blog says Google’s own design will eventually be its downfall.

NY Times ran an article confirming a Google Phone project in the works.  With iphone on the horizon for a launch in June, this new mobile phone entrant is going to have to be really good to get any love….Unless they make it free! 

Coming on the heels of the DoubleClick announcement, Google announced today that they inked a long-term deal with Clear Channel to provide radio advertising to their customers.

Radio?!?  Gimme a fucking break.  This is hilarious!  Who listens to radio anymore now that consumers can choose between satellite radio, Ipods, CDs and public radio.  Although the press release says this is an example of Google using its proprietary technology to help bring advertisers to consumers.  I call bullshit, I think Google has peaked.

Google must be scared, they are buying companies left and right to acquire what? Eyeballs or IP? Google just announced that they purchased DoubleClick for a staggering $3.1BN. Wow, am I the only one thinking these acquisitions have been getting shittier and shittier. Check out this list of acquired companies, have any of them led to anything other than selling advertising? I thought Google was trying to diversify their business, with this latest acquisition I beginning to believe that they are fundamentally a one trick pony. I’m confused as to what DoubleClick does that Google isn’t already doing on its own.

So the question remains, is Google worth all the hype out there? I don’t know, but seeing them throw money away is beginning to change my opinion about them.

Who buys a banner ad company in 2007?