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Google Buys YouTube for $1.65 Billion

By Nate Mook, BetaNews

October 9, 2006, 4:44 PM

Google has agreed to purchase popular video sharing site YouTube for $1.65 billion in stock, the two companies announced after the close of the stock market Monday. The deal marks the largest acquisition for Google in the company's eight-year history.

A potential deal had been rumored since late last week, prompting surprise from a number of industry watchers who failed to see what Google would gain from the purchase. However, the search giant says it will unite YouTube with its online advertising platform.

The deal was reportedly developed in less than a week, and is a massive sum for a company with just 67 employees that was founded only 19 months ago. But YouTube's popularity on the Internet has seen unprecedented growth, even recently outpacing the popular MySpace social network site.

"The YouTube team has built an exciting and powerful media platform that complements Google's mission to organize the world's information and make it universally accessible and useful," Google CEO Eric Schmidt said in a statement.

"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 and to create new opportunities for our partners," remarked YouTube CEO and co-founder Chad Hurley.

YouTube will retain its brand name and offices in San Bruno, Calif., the companies said, and all YouTube employees will keep their jobs. The acquisition is expected to close before the end of the year.

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By hoopoe_sh

edited Oct 13, 2006 - 11:09 AM

explain it more!!!!!

Score: 0

By Mr.knowhow

posted Oct 11, 2006 - 5:19 AM

Google has had an inexplicable growth in 8 years. Its really worth appreciating the approach of Google. Apart from this acquisition, one has to take notice of the manifold beta utilities that Google has come up with viz. its code search,the spreadsheet labs etc....

As soon as users start utilizing these beta versions, there is another beta product ready for release. What is worth noticing is the dedicated effort of Google towards research & innovations...

I believe YouTube is just another feather on Google's hat!!!

Score: 0

By darkzero63

posted Oct 10, 2006 - 11:24 PM

I love how they say "You Tube users will be able to add content to their vids..." the question will be just HOW they will be able to add content.. Obviously its not going to be FREE.

Score: 0

By snoworm

posted Oct 10, 2006 - 8:30 PM

google grow larger and larger...

Score: 0

By samanathon

edited Oct 11, 2006 - 12:07 AM

Why doesn't anyone complain when Yahoo or MSN "grows"?!

But when it's Google, they all have to comment.

Score: 0

By RingMaster

posted Oct 11, 2006 - 12:36 PM

Google spies on everyone to a much higher degree than Yahoo or MSN. That's why.

Score: 0

By samanathon

posted Oct 11, 2006 - 7:14 PM

You kidding yourself if you don't think that EVERYTHING you do on the net isn't logged.

Score: 0

By imafurby

edited Oct 11, 2006 - 6:46 AM

Expect an avalanche of lawsuits involving unauthorized use of copyrighted material as seen on the newly aquired GoogTube.
Whoa, open the floodgates!
Some intellectual property lawyers are going to get very fat indeed.

Score: 0

By AaronDobbins

posted Oct 11, 2006 - 10:42 AM

i would think who gets sued mostly depends on how the site is marketed. Remember with the MP3 services they were sued on the grounds that they advertised and encouraged illegal file swapping, not that it was possible. It would seem then that the users who post the copyrighted material are liable and not the service itself.

YouTube is meant to put user created content on the web, at least in theory right? e.g. lonelygirl15 and the mentos/soda sketches.

Score: 0

By Scotch Moose

edited Oct 11, 2006 - 10:26 AM

If your copyrighted video shows up on on youtube just send them an email and it is immediately pulled down. What is left to sue about? Do you expect youtube to review 600,000 posts/day? Copyright exists to encourage, not suppress, creativity. Most of these videos are less than 2 minutes long and were made to be shared.

It would be grossly unfair to constrict the free exchange of video content just because a few people have got no creativity of their own and post the one good scene from a crappy TV show that was broadcast for free to everybody the night before.

Score: 0

By Doomster

edited Oct 10, 2006 - 9:46 PM

$1.65 Billion for a web site that never made a dime!!!?

Score: 0

By PC Rat

edited Oct 10, 2006 - 4:10 PM

...

"I like BetaNews
because it's
BetaNews, not
Google News"

...

After the multi-billion dollar buyout,
it will be "Google BetaNews" !

...

The Computer Rodent

...

"Share a file /
Get bought by
Google !"

...

Score: 0

By bbb2020

edited Oct 11, 2006 - 9:26 AM

After the multi-billion dollar buyout,
it will be "Google BetaNews" !

Actually - as nothing Google touches make it out of beta, it will be "Google BetaNewsBeta" !

Score: 0

By foxfyre

edited Oct 10, 2006 - 4:41 PM

Yeah yeah yeah...

So, it would be nice if someone somewhere would explain exactly how Google is going to leverage YouTube.

Sure its neat - you can find all sorts of junk - but YouTube has been hemorrhaging money. It is the epitome of the classic dot com fiasco - all sorts of image and flash with no coherent means to generate cash flow... The classic failed business plan - or lack thereof once the initial capitalization is gone...

So Google, what are you going to do with it in addition to 'organizing it' (and I dare say YouTube's search function is one of the better functioning engines around)!? Simply cleaning the closets of all of the world's respositories of entertainment neither gives you rights to the content nor a source of cash.

But now Google is the party with deep pockets with the target painted on them as they stand to fend off all of the sharks just looking for a way to make money off copyright infringement!

But as usual here, lots of social commentary and ire and emotional tears - nada with the business analysis.

Score: 0

By salmonmoose

posted Oct 10, 2006 - 11:10 PM

my guess is that like everything else, google are going to start collecting information. Where do most of google's products actually make money? What is the value of google earth? or calendar?

The thing is, every time someone selects the 'give detailed feedback' option, that's more information google can collect about a user, which means better targeted adverts, the better an advert is targeted the more it is worth.

Score: 0

By Joe Dirt

posted Oct 10, 2006 - 3:26 PM

Google is the Devil.

Google + YouTube = DevilTube

Score: 0

By almux4

edited Oct 11, 2006 - 8:05 AM

Devil as no existence outside religious beliefs... Therefore it doesn't exist.
Now Google needed to be more present with cinema like features on the web. Google is now commited with Apple. Apple will launch some tuff stuff with "iTV" (at least in USA where this kind of service has yet to be realized). As a matter of fact, 1,65 b$ is uge to YouTube folks... but, certainly, the commercial potential must be proportional for the involved market analysts...

Score: 0

By wincement

posted Oct 10, 2006 - 3:27 PM

ServerMechanic, is that you?

Score: 0

By PC_Tool

posted Oct 11, 2006 - 9:03 AM

Uh...

Yeah. I thought everyone knew that. He posted that about 3 days after they deleted the SM account for some reason.

I'm sure it had nothing to do with his Google is The Devil posts though. ;)

Score: 0

By wincement

posted Oct 12, 2006 - 12:53 AM

Wow. Totally didn't know that.

Score: 0

By huttman

posted Oct 10, 2006 - 3:22 PM

i think Gene Simmons should buy Google. Your not in business until you meet the legend :)

Score: 0

By GS5

posted Oct 10, 2006 - 1:25 PM

It won't be long until M$ tries to buy out Google. They are becoming way to powerful. Bill gates will say this monopoly isn't big enough for the both of us. LOL

Score: 0

By THZGryphon

posted Oct 10, 2006 - 8:59 PM

Hah, the dollar sign used as an S....where do you come up with this stuff, it is hilarious!

:rolleyes:

Score: 0

By PC Rat

posted Oct 10, 2006 - 12:29 PM

...

One has to wonder if BetaNews is next in line
for a multi-billion dollar Google buyout ?

...

The Computer Rodent

...

Score: 0

By wincement

posted Oct 10, 2006 - 3:20 PM

No. Please no.

I like BetaNews because it's BetaNews, not Google News.

Score: 0

By Galway

posted Oct 10, 2006 - 7:05 AM

$1.65 billion for a video sharing site.

The world has gone MAD.

Score: 0

By PC_Tool

posted Oct 10, 2006 - 9:14 AM

You're right. That figure is *way* too low. YouTube should have held out for at *least* a cool googol.

Score: 0

By wincement

edited Oct 10, 2006 - 3:23 PM

Nah, they should've gotten 10,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,001 dollars.

(that's a googol + 1)

Score: 0

By PC_Tool

posted Oct 11, 2006 - 9:05 AM

First you break their reply system, now you break their formatting.

Does it never end with you??? :p

Score: 0

By wincement

posted Oct 12, 2006 - 12:53 AM

...sorry :(

Score: 0

By GS5

posted Oct 10, 2006 - 1:20 PM

I bet over 90% didn't get that:-)LMAO

Score: 0

By xyzcb1

posted Oct 10, 2006 - 9:02 AM

Google is buying traffic. 1.65b is just slightly over 1% of Google's market caps. They were up like 2 to 3% because of this deal. So I guess I can say they just make money for closing this deal.

Score: 0

By ravemanson

posted Oct 10, 2006 - 4:58 AM

WHAAAT??! Holy crap! Maybe it's time to pack my bags and fly to some small island somewhere with only a bunch of native folks and start my own search engine. We'll probably drink Google Milk soon in the rest of the world.

This is kinda scary. History show that power consumes You.

Score: 0

By zridling

posted Oct 10, 2006 - 1:00 AM

YouTube is good, Google Video blows. Let's hope they keep YouTube UI intact.

Score: 0

By THZGryphon

posted Oct 10, 2006 - 12:20 PM

Google Video is good, YouTube blows. Let's hope they keep Google Video UI intact.

Score: 0

By wincement

posted Oct 10, 2006 - 3:24 PM

Whatever they do, I hope they keep the .avi option for Mac users so PC users can download the original file and play at will. :)

Score: 0

By bobthegoat2001

posted Oct 9, 2006 - 11:52 PM

It seems like Google video was just released after being in beta for so long. I wounder if there going to switch to Youtube or visa versa.

Score: 0

By pj111984

posted Oct 9, 2006 - 11:33 PM

next microsoft :P

Score: 0

By myk04l

posted Oct 9, 2006 - 9:30 PM

google + youtube = gootube

Score: 0

By Paul Skinner

posted Oct 10, 2006 - 2:17 AM

or Yougle.

Score: 0

By Pensador

posted Oct 9, 2006 - 9:24 PM

I'm afraid that YouTube and Google Video will be merged and I don't like that.

Score: 0

By IceyKola

posted Oct 9, 2006 - 8:39 PM

I like youtube way more than Google video. I think it is way more popular than Google Video and I liked the illegal content. I use it for watching music videos and TV show clips.

Score: 0

By stuarti

posted Oct 9, 2006 - 8:10 PM

Well done Google that is certainly money down the toilet the company was only founded last year and you have bought it for $1.65 Billion more money than sense I suppose you are just copying Microsoft if you can’t beat it buy it. I do hope you lose all your money and I suppose it should keep your lawyers busy for a couple of years for the up and coming law suits that will be coming your way.

Score: 0

By Tenoq

posted Oct 9, 2006 - 9:42 PM

Got punctuation? :P

Score: 0

By PC_Tool

posted Oct 10, 2006 - 9:11 AM

punctuation is so overrated man all these damn commas periods and apostrophes cluttering up words and sentances Hell who needs sentances and words even we should all just grunt like our ancestors did worked out well for them didnt it just thank your lucky stars this is all typed covnersation if it had been written you'd have probaby complained about how he must write with his toes or something

You cannot imagine how hard it was to *not* punctuate that.

Score: 0

By tazandpig

posted Oct 10, 2006 - 4:48 AM

I saw a full stop, somewhere in the middle.

Score: 0

By spongy-poo

posted Oct 10, 2006 - 9:44 PM

nope he only capitalized Hell because its the name of a place that might have fooled you

Score: 0

By AntiochMedia

posted Oct 9, 2006 - 7:16 PM

I think that Google really just wasted some money. The YouTube brand is new and they are facing a great amount of pressure for copyright violation. Google Video is rather lame as it has not been setup in a user friendly manner.

Why couldn't google revise their existing frame-work and couple it with physical review or something else that keeps within copyright law and avoid shelling out the money?

Score: 0

By wincement

posted Oct 9, 2006 - 5:35 PM

Why so much money for a site that hasn't even figured out how they will make a profit? I hope Google has a really good idea...

Score: 0

By chirayu

posted Oct 9, 2006 - 5:43 PM

I was wondering the same thing, but than again we're talking about google! :-P

Score: 0

By I'm Batman

posted Oct 9, 2006 - 6:02 PM

Well this IS google... I'm sure this won't even scratch their annual income.

Score: 0

By WebWarp

posted Oct 9, 2006 - 7:19 PM

"Net income $1.465 Billion USD (2005)" and a good guess will say a 255% increase this year..

Score: 0

By JustExtreme

posted Oct 9, 2006 - 5:58 PM

hmmm i wonder if they will merge it together with google video

Score: 0

By THZGryphon

posted Oct 9, 2006 - 7:53 PM

I hope they keep the Google layout. YouTube is ugly and cluttered and you have to go through an extra click get full screen, and even then it is "too" full screen. I like Googles simple, full-ish screen layout and no BS.

Score: 0

By Tenoq

posted Oct 9, 2006 - 9:44 PM

I can agree with that, but the YouTube video library is better, and the search seems more effective. It will be very interesting to see where this goes.

Score: 0

By alexweber15

posted Oct 10, 2006 - 10:44 AM

for sure!
i have no clue what they are gonna do with both services but it doesn't make much sense to keep both...

they're gonna have to really crack down on the illegal stuff though to avoid lawsuits though cause the sh!t can really hit the fan here

Score: 0

By 9i08

posted Oct 10, 2006 - 1:31 PM

there will always be a vast amount of ''illegal'' stuff on youtube, for as long as it remains online. its because a large number of the userbase only go there to watch music videos, The Colbert Report, and the occasional documentary which took you hours to find.[just about describes me. ohh, and Google Video is exellent for docs'.]

And the proof is in the pudding

Score: 0

By roylink

edited Oct 10, 2006 - 10:49 PM

They just started to enforce copyright laws on youtube.

Score: 0

By wincement

posted Oct 10, 2006 - 3:26 PM

Personally, I like watching all the episodes of old TV shows that you can't find anywhere anymore.

Score: 0

By darkzero63

posted Oct 10, 2006 - 11:27 PM

Like what?

Score: 0

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