Google Buys YouTube

[MarineCorps]

For $1.65 Billion.

Google Inc. has laid speculation to rest--it will buy YouTube for $1.65 billion in a stock transaction.

YouTube operates a wildly popular Web site where original videos appear in a range of quality from amateurish to professional. It will continue to operate independently after the Google acquisition "to preserve its successful brand and passionate community," Google said today. The deal is expected to close in the fourth quarter.

Though YouTube CEO and cofounder Chad Hurley had previously insisted that YouTube wasn't for sale, his view changed when Google agreed to allow YouTube to operate independently, Hurley said during a conference call that included Google and YouTube executives this afternoon.
'A Better Experience'

Bringing YouTube into the ever-growing Google empire will mean that users have a "better, more comprehensive experience" when they upload, watch, and share videos, Google said. It will also give professional content owners more opportunities to get their work out to a wider audience, Google and YouTube executives said during the conference call. Rumors of the purchase first surfaced last week.

The two companies share a commitment to users first and also to innovation, Google CEO Eric Schmidt said. "Together, we are natural partners to offer a compelling media entertainment service," he said.

The deal is "an exciting next step" for Google, Schmidt said, adding that the company expects to make other deals related to providing video over the Internet. YouTube has "built a remarkable team" that is "a perfect example of the kind of people we like to work with," he said in the conference call. YouTube's business is "extraordinary," both as a financial success story and in its vision of serving users, Schmidt said.
Backscratching

YouTube will benefit from Google's global reach and technological know-how, Hurley said. "We're excited by this announcement and thrilled to join forces with the Google team," he said. The acquisition will boost YouTube's new video content platform, which is expected to launch in the next month, he said.

The companies will merge Google's search expertise with YouTube's video expertise, pushing what executives believe is a hot emerging market of video offered over the Internet. Google Video will continue to operate, executives said, calling that service "a very valuable aspect of the Google experience." The aim is that it will improve as a result of the acquisition, Google executives said.

The number of Google shares to be issued will be based on the 30-day average closing price two trading days before the deal is completed, Google said.

http://www.pcworld.com/article/id,127436-c,google/article.html

I wish I had 1.65 Billion .

 

[AL_DA_GREAT]

Is this a hoax!! How does YouTube make money? Anyways I like that youTube is growing. It challenges Microsoft.

 

[Steve2000]

In a separate deal, YouTube also reached a deal with Vivendi Universal Music, and Sony BMG Music to license music videos and other copyrighted content in exchange for sharing ad revenues.

 

[marioh]

1.65 Billion for Youtube ?!?!

I didn't even know Youtube made money, much less enough to be bought for 1.65 billion.

 

[Volum]

Well, with 30 million users, there sure is money makeing possibilities.

 

[oagersnap]

Is this a hoax!! How does YouTube make money? Anyways I like that youTube is growing. It challenges Microsoft.

Well, to answer your question:

 

[Erik Mesoy]

Pick your source.

Breaking news. I have to go and think about the repercussions for a bit.

My first thought is that this cements Google's position fairly well ahead of Yahoo and other competitors.

Comments?

 

[warpus]

Bad move, IMO, considering that YouTube houses a lot of copyright content. Now that Google has taken over, they will likely get rid of it.

 

[Tycoon101]

It's fine with me. This is business, it's not your place to whine about it. If you want to make a fuss, then make your own business.

I'm personally happy for Google.

 

[Tenochtitlan]

But GooTube is gonna be way faster and more dependable than youtube.

Youtube started in Feb 05. Think about it. Zero to 1.65 billion in Less than 2 years. That is unheard of.

 

[Tycoon101]

But GooTube is gonna be way faster and more dependable than youtube.

Youtube started in Feb 05. Think about it. Zero to 1.65 billion in Less than 2 years. That is unheard of.

Did it have stock yet? Or was it privately owned?

 

[Ginger_Ale]

Is this a hoax!! How does YouTube make money? Anyways I like that youTube is growing. It challenges Microsoft.

I wasn't aware that Microsoft was interested in the random online video business...

 

[Tenochtitlan]

Did it have stock yet? Or was it privately owned?

I'm guessing private, but I have no idea really.

 

[AL_DA_GREAT]

I need to start a company in my shed. How do they make money?

 

[warpus]

I need to start a company in my shed. How do they make money?

Money can be exchanged for goods and services.

 

[Sidhe]

You tube is a fantastic resource for expression, although most of it is trash, I think the whole concept is very clever, and dare I say it, obviously destined for success, Google with there internet savvy will no doubt bring a much greater audience and a resource injection and therefore a much better service to the medium, although sadly it'll probably be burried under advertising.

I need to start a company in my shed. How do they make money?

They didn't untill they sold a clever idea to a large company. There's the key

 

[Tenochtitlan]

Money can be exchanged for goods and services.

 

[Tenochtitlan]

obviously destined for success

Welcome to 2005

 

[AL_DA_GREAT]

Money can be exchanged for goods and services.

What goods and sercvices? I mean a few adds can't bring in 1 600 000 000 dollars.

 

[C~G]

Money can be exchanged for goods and services.

Except when it comes to lawyers and consultants, they usually exchange money for time they use just being idle.