Google has bought YouTube

Martin · 10-06-2006, 12:03 PM

http://online.wsj.com/article/SB1160..._whats_news_us

Quote:

Google Is in Talks to Buy YouTube
By KEVIN DELANEY
October 6, 2006 11:55 a.m.

Google Inc. is in talks to acquire online video site YouTube Inc. for roughly $1.6 billion, according to a person familiar with the matter.

The discussions are still at a sensitive stage and could well break off, this person says. Rumors of such talks were reported earlier on the TechCrunch blog.

A spokeswoman for YouTube could not be reached for comment. A Google spokesman said, "We don't comment on rumors and speculation."

YouTube is a poster child for a new generation of startups, which is surging thanks to the growth in usage of the Internet and online advertising. Founded in February 2005 in a garage by three twentysomething alums of eBay Inc.'s PayPal electronic-payment unit, YouTube quickly built a huge consumer following for videos online. Now users watch more that 100 million videos daily, and the site's market share tops that of similar services from the likes of Google, according to some research firms.

Rumors circulated earlier this year that some major media companies expressed interest in buying closely-held YouTube. CEO Chad Hurley said at the time that the company was not for sale and an IPO in the future was a possibility.

YouTube has stood out from the growing corps of online video services for its simplicity. YouTube serves up videos from its Web site directly or from other sites where people insert them, generally not requiring users to download any special software. It also let consumers display its videos on other sites, such as blogs or personal pages on News Corp.'s popular MySpace social networking service.

Last month, the San Mateo, Calif., company announced a new system to give media companies more control over the video on the site and to address their fears that others will profit from consumers' piracy of their content. Last month, Warner Music Group became the first entertainment company to embrace the system. The two companies have agreed that Warner Music will post its catalog of music videos on YouTube and collect an unspecified percentage of the revenue from advertising appearing alongside them.

RadioactiveMan · 10-06-2006, 12:29 PM

I like Google, but I don't like the idea of any company trying to monopolize the internet. I hope that the deal doesn't work out.

Martin · 10-09-2006, 05:01 PM

Too late..they bought it.

http://apnews.myway.com/article/20061009/D8KLB0A00.html

Quote:

Google Snaps Up YouTube for $1.65B

SAN FRANCISCO (AP) - Google Inc. (GOOG) snapped up YouTube Inc. for $1.65 billion Monday in deal that catapults the Internet search leader to a leading role in the online video revolution. The all-stock acquisition unites one of the Internet's marquee companies with one of its rapidly rising stars.

The price makes YouTube, a still-unprofitable startup, by far the most expensive purchase made by Google during its eight-year history.

Although some cynics have questioned YouTube's staying power, Google is betting that the popular Web site will provide it an increasingly lucrative marketing hub as more viewers and advertisers migrate from television to the Internet.

"We are natural partners to offer a compelling media entertainment service to users, content owners and advertisers," said Eric Schmidt, Google's chief executive officer.

YouTube will continue to retain its brand, as well as all 67 employees, including co-founders Chad Hurley and Steve Chen.

Big Red 11 · 10-09-2006, 08:46 PM

Quote:

all 67 employees

My favorite part of this story is that a company with 67 people is worth 1.65 billion dollars.

Swiss Miss · 10-10-2006, 12:06 AM

I'm with Radio on this, Google is getting too coporate for my liking now. I love the search engine and the simplicity (or masked complexity, rather) of their innovation and presence but I don't want to see it branded everywhere! I like just a bit of variety.

In fact, I'm a little sadded they don't own or have made a MySpace clone yet. Maybe I've spoken too soon...

RadioactiveMan · 10-10-2006, 02:24 PM

You mean like MSN's myspace clone? Personally, I don't see why companies like Microsoft try to compete by reusing ideas instead of having their own. It's not like anyone is going to switch from myspace to MSN spaces.

Martin · 10-10-2006, 04:57 PM

Sounds like it'll be more rewarding to people submitting their videos..Now they can get paid.

http://www.dailymail.co.uk/pages/liv...n_page_id=1770

Quote:

YouTube users could share in ad revenues

YouTube users could be paid for their video clips after the popular website was bought by Google for around $1.6bn (£900m).

Those who upload clips will get a slice of advertising revenue on the pages containing their videos.

Google fought off arch-rival Yahoo! in one of the biggest ever Internet deals.

The sale has made instant multimillionaires of creators Chad Hurley and Steve Chen, who launched the site 19 months ago from a California garage.

Up to now the two have been running the company on credit card debts.

Last night's deal is expected to make them instant multi-millionaires and deliver huge windfall's to the company's 67-strong workforce.

YouTube has become one of the most popular sites on the web with more than 100 million video clips viewed every day by an estimated 72 million users.

Clips range from bizarre home videos to snippets of TV shows, music gigs and sports events - many apparently breaching copyright laws.

In recent weeks, several major record companies, including Universal, have signed deals with YouTube to distribute clips and protect the rights of their artists.

Mr Hurley said: "Our community has played a vital role in changing the way that people consume media."

"By joining forces with Google, we can benefit from its global reach and technology leadership to deliver a more comprehensive entertainment experience for our users."

Google chief executive Eric Schmidt plans to turn a profit by adding adverts to the site.

Internet experts suggest that Google's YouTube coup may put pressure on Yahoo to buy Facebook.com, the Internet's second most popular social-networking site.

Yahoo reportedly has offered as much as £790 million for Facebook which is widely used by UK university students, and students across the globe, to post information about themselves and share with friends.

Go Pre · 10-11-2006, 12:23 PM

Time to change the title of this thread to "Google has bought YouTube." I wonder how big of a "slice" of the revenue pie users are going to get.

Consider it done. -Swiss

RadioactiveMan · 10-11-2006, 03:34 PM

I'd expect that users would only earn a few dollars after posting all of their videos except for the incredibly popular ones for which they'd get a still small but notable sum and obviously they'd recieve large ammounts of money for uploading the amazing Alizée videos on there.

Swiss Miss · 10-11-2006, 07:12 PM

Aren't they concerned with piracy and/or copyright infringement? I'm sure Google can afford the lawyers... but I see a big problem in future with this.

10-10-2006, 12:06 AM	#5
Swiss Miss Moderator Join Date: Mar 2006 Location: Orlando, FL Posts: 160	I'm with Radio on this, Google is getting too coporate for my liking now. I love the search engine and the simplicity (or masked complexity, rather) of their innovation and presence but I don't want to see it branded everywhere! I like just a bit of variety. In fact, I'm a little sadded they don't own or have made a MySpace clone yet. Maybe I've spoken too soon... __________________ "Typos are very important to all written form. It gives the reader something to look for so they aren't distracted by the total lack of content in your writing." - Randy K. Milholland

10-11-2006, 07:12 PM	#10
Swiss Miss Moderator Join Date: Mar 2006 Location: Orlando, FL Posts: 160	Aren't they concerned with piracy and/or copyright infringement? I'm sure Google can afford the lawyers... but I see a big problem in future with this. __________________ "Typos are very important to all written form. It gives the reader something to look for so they aren't distracted by the total lack of content in your writing." - Randy K. Milholland

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10-06-2006, 12:29 PM	#2
RadioactiveMan Senior Member Join Date: Feb 2006 Location: B.C. Age: 19 Posts: 113	I like Google, but I don't like the idea of any company trying to monopolize the internet. I hope that the deal doesn't work out.

10-10-2006, 02:24 PM	#6
RadioactiveMan Senior Member Join Date: Feb 2006 Location: B.C. Age: 19 Posts: 113	You mean like MSN's myspace clone? Personally, I don't see why companies like Microsoft try to compete by reusing ideas instead of having their own. It's not like anyone is going to switch from myspace to MSN spaces.

10-11-2006, 12:23 PM	#8
Go Pre Junior Member Join Date: Oct 2006 Location: Long Island Age: 21 Posts: 3	Time to change the title of this thread to "Google has bought YouTube." I wonder how big of a "slice" of the revenue pie users are going to get. Consider it done. -Swiss

10-11-2006, 03:34 PM	#9
RadioactiveMan Senior Member Join Date: Feb 2006 Location: B.C. Age: 19 Posts: 113	I'd expect that users would only earn a few dollars after posting all of their videos except for the incredibly popular ones for which they'd get a still small but notable sum and obviously they'd recieve large ammounts of money for uploading the amazing Alizée videos on there.