Google's Big Bet, Airbus' Pain

Google takes a leap of faith

Google (GOOG) shares rose after the Internet search giant announced it was buying YouTube, the popular video-sharing Web site. Google was up more than 1 percent in Europe today. (Bloomberg) The steep price -- $1.65 billion in stock -- was a reminder of the 1990s before the tech bubble burst. "It's scary," said analyst Josh Bernoff of Forrester Research. The acquisition is Google's biggest yet, and it's a gamble, as YouTube has yet to find a way to turn its heavy traffic into profits. "It's a bet," said analyst Ben Schachter of UBS Investment Research, "but it's probably a bet worth taking." (Los Angeles Times, free registration required)

Airbus gets tough

The new chief executive of Airbus warned that he would have to make "painful" job cuts in the next several months to simplify the company's "baroque" structure. Louis Gallois replaced Christian Streiff, who resigned yesterday as head of the battered European aircraft maker after just 100 days on the job. Gallois said the losses would hit management rather than blue-collar workers. He also said that despite disastrous delays caused by wiring problems in the new A380 superjumbo airliner, the jet was the "most modern" aircraft in the world. (Reuters)