Google recently bought the video site YouTube.com for a whopping $1.65 billion. So, what does this mean for rival companies like Yahoo!, MSN, and News Corp(Rupert Murdoch). They need to keep up, right?

How will they answer Google's surely inevitable rule of the world? Are they going to start acquiring thier own start-ups like Facebook or Digg just to try and combat Google for a larger audience? After all, they can basically buy a segment of users with each purchase of an independent start-up.

Will this be the beginning of an Internet arms race?