Goo Tube - Google buys Youtube for $1.6 billion

[mad4]

Via Techcrunch (http://www.techcrunch.com/2006/10/06/completely-unsubstantiated-googleyoutube-rumor/)

I got an email tonight about a possible Google acquisition of YouTube that may be in the final stages before closing. Rumored price is $1.6 billion. A quick phone call to a VC confirmed that the rumor is circulating (he also confirmed the price), but that is far from confirmation that this deal is happening. I’m digging for more but the source on this one is very good.

We know that YouTube has had informal talks with a number of companies about acquisition in the $1.5 - $2 billion range. And I suspect Google won’t be daunted by the prospect of dealing with a ton of pissed off copyright holders.

[T0PS3O]

Interesting but it seems a bit off their chosen path. Not sure how true this will turn out to be.

[mad4]

I thought Google Video was a success in its own right. Will be interesting to follow.

Rupert Murdoch was saying that Myspace Video could overtake Youtube (http://mashable.com/2006/09/19/rupert-murdoch-myspace-video-bigger-than-youtube-in-60-days/) within 60 days.

[T0PS3O]

I still only ever clocked around 10 myspace page impressions. It's the biggest piece of visual junk I've EVER seen. Worse than Geocities. I just refuse to get anywhere near it.

Based on that and assuming I'm not the only one of that opinion, I can see a competitor beat Murdoch and his nonsense-media outfit.

[Indian]

Why would Google buy Youtube when they have their very own Google Videos?

[mad4]

Why would Google buy Youtube when they have their very own Google Videos?

To stop Yahoo buying them?

[Indian]

To stop Yahoo buying them?

Well, that would be a good reason but then Google will have 2 similar things going. Will Google merge YouTube and Google Videos?

A common domain where people can upload videos and search for videos on the Internet would rock. That would be the biggest online videos hub & impossible to beat by any company.

[T0PS3O]

It's the same reason why Getty Images also own iStockPhoto. Both to make sure indeed competition don't get it and for sheer market domination.

[SumitBahl]

As TOPS said they want to crush their competitors.

[T0PS3O]

Google is also probably the only company in the world who has the infrastructure to grow YouTube in a sustainable fashion. I'm talking servers and fibre and the required stash of cash.

[khan11]

youtube is doing good business,i dont think they will sell it any cost

[genkied]

hmmm i just saw this..
Only a "moron" would buy YouTube: Mark Cuban (http://news.yahoo.com/s/nm/media_youtube_dc)

[yfs1]

Google is also probably the only company in the world who has the infrastructure to grow YouTube in a sustainable fashion. I'm talking servers and fibre and the required stash of cash.

Plus its a better match as they don't have to actually make it profitable (which seems nearly impossible), they can use it to bolster their other offerings and make their stock holders happy.

[PS3]

Well it seems like Google really wants to dominate the world. Know there are rumors of Google buying Youtube. Check it out here (http://www.threadwatch.org/node/9165).

What do you think?

[nonmedia]

I think it will just stay a rumor.

[James Woods]

I call BS on this. I've noticed something about YT recently that would suggest to me that they are indeed in talks to sell the site, but Google? Hell no.

[EGS]

Damnit! I wanted to buy YouTube! :mad:
Grrr...Google is always beating me to my purchases! :D:D:D

[mad4]

Yeah, looks like your bid of $1.5 billion wasn't enough. Shit. :(

[soniqhost.com]

Google in talks to acquire YouTube for $1.6 bln: WSJ

Google is in talks to acquire video-sharing Web site YouTube Inc. for about $1.6 billion, according to a media report on Friday. The discussions are still at a "sensitive stage", the Wall Street Journal reported on its Web site, citing a person familiar with the matter. The existence of the talks was reported earlier today on the TechCrunch blog, the Journal reported.

Its not a surprise that they need to buy a video company since their video offerings haven't taken off. The price tag of $1.6 Billion is more then what I expected youtube to go for. Since its being bought by a big company with deep pockets. I wonder if their will be more lawsuits filed against YouTube/Google for copywrite issues.

[James Woods]

Google in talks to acquire YouTube for $1.6 bln: WSJ

Google is in talks to acquire video-sharing Web site YouTube Inc. for about $1.6 billion, according to a media report on Friday. The discussions are still at a "sensitive stage", the Wall Street Journal reported on its Web site, citing a person familiar with the matter. The existence of the talks was reported earlier today on the TechCrunch blog, the Journal reported.

Its not a surprise that they need to buy a video company since their video offerings haven't taken off. The price tag of $1.6 Billion is more then what I expected youtube to go for. Since its being bought by a big company with deep pockets. I wonder if their will be more lawsuits filed against YouTube/Google for copywrite issues.

It's just rumours, it won't happen.

[soniqhost.com]

I think it might happen because 1. Online Video will be a large media for advertising and 2. Google Video isn't doing well against Youtube.

[Tyler Banfield]

http://img438.imageshack.us/img438/2527/gootubeeq3.jpg

[TomN]

youtube controls a very large portion of u.s. viewers. more than myspace and google video. Google wants that market share. They can cross promote things and tie it into their existing accounts or tools or whatever. Also they can sign deals with music companies to pay them royalties. I think it is a decently smart move for google, albeit a pricey one.

[SumitBahl]

http://img438.imageshack.us/img438/2527/gootubeeq3.jpg

I dont believe they are going to change the name.

But its a nice logo you did. Email it to Sergy or Larry.
You have their email or should I PM you? :p:D;)

[Tyler Banfield]

I dont believe they are going to change the name.

But its a nice logo you did. Email it to Sergy or Larry.
You have their email or should I PM you? :p:D;)

Of course I have it, we chat all the time :D

[IamNed]

1.6 billion isnt much money for google

It is a drop in the bucket when you consider that tha market cap is a whopping 130 billion and if the stock goes up 5% it is already paid for

[stereolab]

youtube is doing good business,i dont think they will sell it any cost

they are? where's their revenue?

[James Woods]

they are? where's their revenue?

In their bank account.

[d16man]

Check out the link...google is in talks to buy youtube...

link (http://online.wsj.com/article/SB116014813857884917.html?mod=home_whats_news_us)

[frisby]

A Google spokesman said, "We don't comment on rumors and speculation."
I think this is the only think I can say. ;)

[JonathanLyons]

the costs that YouTube is enduring to maintain the bandwidth and handle the traffic it receives...on top of the limited revenue they are generating right now...this would be a great move on both their parts. google will inherit one of the top ranked sites on the net with a loyal following and at the same time, eliminate a large competitor to their google videos. they can then implement their google adwords all around these video clips. youtube would still make a large profit on the buyout and no longer have to suffer the incredible costs of maintaining their site.

[James Woods]

the costs that YouTube is enduring to maintain the bandwidth and handle the traffic it receives...on top of the limited revenue they are generating right now...this would be a great move on both their parts. google will inherit one of the top ranked sites on the net with a loyal following and at the same time, eliminate a large competitor to their google videos. they can then implement their google adwords all around these video clips. youtube would still make a large profit on the buyout and no longer have to suffer the incredible costs of maintaining their site.

But then Youtube could add adsense too..and make a profit.

[Raisin]

If Google doesn't buy Youtube someone else will. Youtube may act like their not selling, but that's just a ploy to drive the price up.

This will be a great move by Google if they can pull it off. Combined with their own video service they'll have a huge lead over any competitor.

[mehbooba]

it was on BBC news a few minutes ago. Both are keeping hush.. but sources say the google will be paying $1.6b to $2b

its on the bbc website as well :

Google 'in talks to buy YouTube'

Google is reported to be in talks to buy popular video-sharing website YouTube for $1.6bn (£856m).

The Wall Street Journal said discussions between the two sides were at a sensitive stage and the talks could break up.

Neither Google nor YouTube have made any comment.

Launched in February 2005, YouTube has grown quickly into one of the most popular websites on the internet, with 100 million videos viewed every day.

full article here :
http://news.bbc.co.uk/1/hi/business/5414432.stm

[IamNed]

Google missed on myspace..so now now youtube is available

[frankcow]

this thread title is a little misleading, the purchase hasn't taken place yet

[blindguardian]

I highly doubt that, but you never know. :D

[n.b]

That is exactly what I have read on several news websites.

[James Woods]

Google missed on myspace..so now now youtube is available

I bet you $1000 they will not buy Youtube.

[Computerized]

I doubt YouTube is hardly making any profits at all. If I were the owner of YouTube, I'd be glad to sell.

[Raisin]

I bet you $1000 they will not buy Youtube.

While it is possible the deal could fall through. I don't see any reason why google wouldn't buy youtube if they had the chance.

[kevinn]

and another example of G taking over the world.

[un1x]

That's sad, youtube is a young site that depends on copyrighted material, it's only a matter of time before it's shut down or before it has to inforce harsh uploading rules that'll scare users away.

I don't care what anyone says, no business can survive on copyrighted material.

[jessica12]

http://img438.imageshack.us/img438/2527/gootubeeq3.jpg

nice banner, Tyler! :D
wow.. youtube is only 1.5 yr old :eek:

[Sharpseo]

Did you guys see how Mark Cuban recently said that only an idiot would buy YouTube?

It would be a good acquisition, in my opinion. Yes, they are having trouble monetizing it, and the bandwidth is expensive. But if the traffic is there, I think they'll find a way to monetize it.

Most new forms of media are hard to monetize at first. No one could monetize search well for the first few years.

Edit - He does raise a somewhat valid point about the copyright issue. There are tons of entire TV shows on there. But even if they eliminated all copyrighted material, they'd still have a thriving business of people viewing homemade videos.

[Ganceann]

That's sad, youtube is a young site that depends on copyrighted material, it's only a matter of time before it's shut down or before it has to inforce harsh uploading rules that'll scare users away.

I don't care what anyone says, no business can survive on copyrighted material.

Copywrited material doesn't bother google - they simply quote fair usage policy or freeze the copywrite holder out by allowing them to request copywrited material is withdrawn (instead of google having to seek permission to use copywrited material).

Also, when google are involved people tend to jump aboard thinking a new gravy train has rolled into the station ... even though it is simply google extending their brand.

[khan11]

they are? where's their revenue?

In their bank account.

sorry i dont know their bank account number :rolleyes:

[seodelhi]

Not sure, how true is this but If this goes through then yahoo and microsoft will have a problem. Videos are the next big thing on the net, if G gets youtube, it would create a sort of monopoly in this market for Google.

[dark]

i like google very much but it looks like Microsoft. i think google wanto be
monopoly.
i think oneday we ll talk google buy D-P. :)

[Jeff Smith]

Planet Google, formerally known as Earth.

[Jelf]

yup they buying out anything which competition could get!

[national-parks]

I hope Google doesn't buy Youtube -- it's good to have two different choices.

[Tyler Banfield]

http://img438.imageshack.us/img438/2527/gootubeeq3.jpg

[Winagain]

I think it's an obvious step for google


Sss
Ssss step.yahoo Yahho

[maldives]

Bad news certainly!

[Kyle H.]

lol @ gootube

[danfirst]

Google came from Mars to rule Earth.

[dbinto]

Holy crap it ain't paid news for the 67 people who are working at youtube (1.6 BILLION). On Saturday morning the Audi TT salemen will be lined up in the parking lot of the restaurant below their office. I've sure the venture guys will be hauling on this one but with 67 employees they all likely have some sort of deal.

Company launched in Feb. 2005 according to the WSJ article. Who says the internet millionaires are gone.


Bad news certainly!

[IamNed]

You dont need a profitable company to make money with your business as Youtube and myspace have shown.

[eldo]

youtube owners have achieved what they thought of.they made big return's only in 1 year span.i think they were not going to continue this business anyways with millions going to hosting company per month.

Btw, now how will google host youtube if it buys..will it create a new hosting company???lol.
I think this deal will affect rackspace the host's of youtube.

[poseidon]

Excellent move by google because it was always on the cards that someone is going to buy youtube one day or the other. Can you see guys what google is doing ? :) They are buying complementing things and integrating "everything".

FIrst of all google don't have to pay 75% of google adsense to YouTube :) secondly they will add more functionality to it and we can add them on blogger and orkut giving more exposure to all, youtube,blogger and orkut.

1 years back when I had seen orkut, I immediately knew it that its going to be for google adsense. Google waited....waited..waited for it to grow and now just yesterday when I logged in, there was Google Adsense.

Anyway coming back to Google buying youtube, there is one tricky issue here. What about copyrighted stuff aired on youtube because now recording companies will be more than happy to sue google as compared to youtube.

[ravianz]

Youtube is down with the following err:

You have reached YouTube, the premier digital video repository on the Internet. We are currently rolling out new features to the site.

We'll be back soon...

[Will.Spencer]

While it is possible the deal could fall through. I don't see any reason why google wouldn't buy youtube if they had the chance.

The same reason that you or I wouldn't buy something -- it costs money. :D

Google will have a difficult time justifying an ROI on a $1.6B purchase of YouTube.

[dcristo]

I read the guys behind YouTube would never sell. Maybe they received an offer they couldn't refuse.

[lpstong]

Just got an email from a newsletter from Word Pro News

Rumor Of The Week: Google To Buy YouTube
Jason Lee Miller | Staff Writer

TechCrunch's Michael Arrington rates his own rumor at about 40
percent likely, just so we get that out of the way. The "completely
unsubstantiated" rumor is that Google is finalizing talks to acquire
web video phenomenon YouTube.

Arrington received the information via email, confirmed the rumor
and the price ($1.6 billion) with venture capitalist firm Sand Hill
Road. Earlier reports have valued YouTube, which streams about 100
million videos per day, as high as $2 billion, even with its
million-dollar-per-month bandwidth fees.

The commentators at TechCrunch are split on the rumor, some calling
it "ludicrous," others exploring the possibilities of why it would
make sense for Google to acquire YouTube. The first thought, at
least from here, is that Google has to do something with all that
cash.

"Google is sitting on huge amounts of cash," says Sebastian Borek,
"their shareholders demand Google to continue their story. Also the
Internet is a winner take it all business, that by nature drives
consolidation of the market - sometimes earlier then expected."

It's no secret that Google has been moving from search engine
company to media company, and controlling a market like the one
YouTube commands would play straight into that strategy. Adding
YouTube to Google Video would give Google tremendous video market
share, adding to their search dominance.

[Raisin]

The same reason that you or I wouldn't buy something -- it costs money. :D

Google will have a difficult time justifying an ROI on a $1.6B purchase of YouTube.

Yes, it is a hefty price tag, but there's plenty of justification for buying it. YouTube is the most heavily trafficked site on the Internet, and Google depends on Internet traffic for the majority of its revenue. YouTube will go a long way in helping Google maintain its dominance of the Internet. If Google doesn't buy them some other company will. I can see Microsoft buying them and sticking MSN search boxes all over the site.

[fuser00]

TechCrunch's Michael Arrington rates his own rumor at about 40
percent likely, just so we get that out of the way. The "completely
unsubstantiated" rumor is that Google is finalizing talks to acquire
web video phenomenon YouTube.

Arrington received the information via email, confirmed the rumor
and the price ($1.6 billion) with venture capitalist firm Sand Hill
Road. Earlier reports have valued YouTube, which streams about 100
million videos per day, as high as $2 billion, even with its
million-dollar-per-month bandwidth fees.

The commentators at TechCrunch are split on the rumor, some calling
it "ludicrous," others exploring the possibilities of why it would
make sense for Google to acquire YouTube. The first thought, at
least from here, is that Google has to do something with all that
cash.

"Google is sitting on huge amounts of cash," says Sebastian Borek,
"their shareholders demand Google to continue their story. Also the
Internet is a winner take it all business, that by nature drives
consolidation of the market - sometimes earlier then expected."

It's no secret that Google has been moving from search engine
company to media company, and controlling a market like the one
YouTube commands would play straight into that strategy. Adding
YouTube to Google Video would give Google tremendous video market
share, adding to their search dominance.

[DidierE]

Source: WebProNews
TechCrunch's Michael Arrington rates his own rumor at about 40
percent likely, just so we get that out of the way. The "completely
unsubstantiated" rumor is that Google is finalizing talks to acquire
web video phenomenon YouTube.

Arrington received the information via email, confirmed the rumor
and the price ($1.6 billion) with venture capitalist firm Sand Hill
Road. Earlier reports have valued YouTube, which streams about 100
million videos per day, as high as $2 billion, even with its
million-dollar-per-month bandwidth fees.

The commentators at TechCrunch are split on the rumor, some calling
it "ludicrous," others exploring the possibilities of why it would
make sense for Google to acquire YouTube. The first thought, at
least from here, is that Google has to do something with all that
cash.

"Google is sitting on huge amounts of cash," says Sebastian Borek,
"their shareholders demand Google to continue their story. Also the
Internet is a winner take it all business, that by nature drives
consolidation of the market - sometimes earlier then expected."

It's no secret that Google has been moving from search engine
company to media company, and controlling a market like the one
YouTube commands would play straight into that strategy. Adding
YouTube to Google Video would give Google tremendous video market
share, adding to their search dominance.
Some wonder if Google would be willing to take on the potential
copyright nightmares that come with YouTube, and how long after
acquisition that lawsuits began pouring in, considering Google's cash
mound.

Arrington admits that these rumors usually turn out to be false, but
feels it is his duty to report when major VC firms are buzzing about
something.

Though some question the value of YouTube, the company itself is said
to have set a $2 billion price tag. Why the discount, if this is
true? MySpace and Yahoo are overtaking the video scene (another reason
for Google's interest in video), which puts YouTube in third place
among video sites.

Commentator Jason L. Baptiste brings Apple into the equation, and
presents his own theory:

1) google buys youtube
2) youtube and google deploy video adwords ie- contextual/"vidtextual"
ads postroll, monetizing the content.
3) google delivers youtube via Apple's iTV, to get it to people on
their tv.

"We were all calling News Corp. idiots for buying MySpace a year
ago," said Baptiste, "now it's a steal."


What do you think?
I love the video adwords idea :)

[nicogarcia]

That what they say.
The are talking now.
Im kinda affraid about Google. They are buying everything.
That means once they buy the choose what to show, or ban.
Google is not as Nice as it looks with that "Dont be mean" theory.
In 10 years... are we gonna call Internet "Google" ?

[pjk]

Rumor Of The Week: Google To Buy YouTube
Jason Lee Miller | Staff Writer : webpronews.com

TechCrunch's Michael Arrington rates his own rumor at about 40
percent likely, just so we get that out of the way. The "completely
unsubstantiated" rumor is that Google is finalizing talks to acquire
web video phenomenon YouTube.

Arrington received the information via email, confirmed the rumor
and the price ($1.6 billion) with venture capitalist firm Sand Hill
Road. Earlier reports have valued YouTube, which streams about 100
million videos per day, as high as $2 billion, even with its
million-dollar-per-month bandwidth fees.

The commentators at TechCrunch are split on the rumor, some calling
it "ludicrous," others exploring the possibilities of why it would
make sense for Google to acquire YouTube. The first thought, at
least from here, is that Google has to do something with all that
cash.

"Google is sitting on huge amounts of cash," says Sebastian Borek,
"their shareholders demand Google to continue their story. Also the
Internet is a winner take it all business, that by nature drives
consolidation of the market - sometimes earlier then expected."

It's no secret that Google has been moving from search engine
company to media company, and controlling a market like the one
YouTube commands would play straight into that strategy. Adding
YouTube to Google Video would give Google tremendous video market
share, adding to their search dominance.

[wissam]

Nice, well wait and see, anyway Google have a video search engine but it's not social as YouTube, if YouTube sells thier hard work to Google they will be DUMP A[peeep]s

[Shawon]

youtube wont be as popular anymore cuz google will be much more strict on the copyright laws and half the current videos will be gone. like music vids, tv shows, etc.

[serenity404]

I wouldnt put it past Google to do it, but i hope they won't for the exact same reason Shawon gave.

[wissam]

youtube wont be as popular anymore cuz google will be much more strict on the copyright laws and half the current videos will be gone. like music vids, tv shows, etc.

Yea man, Google is a good company, but they will kill youtube ...
youtube is pure and young we are tired of seing google every where ..
on TV, on Ads, I am afraid that I will find Google writting on my *SS if I see it in a mirror lol ...

[Pat Gael]

From my point of view, Google is just making the same that Microsoft did in the past.

Purchasing all the services that might compete with them, leaving to surfer no other option, or just a few other than G.

[pjk]

It's not like YouTube has to sell it. IMO, google is making a bad decision by buying it, if they do it.

[Shawon]

but im positive google will remove all those videos and cut down on the copyrights. simply because everyone knows Google is swimming in money and companies will try to sue them for the slightest copyright infringement every chance they get.

[edwinsoft]

hope they dont buy. I will miss those copyrighted videos...

[IamNed]

It is a good move in google part from a business standpoint. 1.6 billion isnt much money for google and it will give google more marketshare.

At this point google may be unstopable to their eventual goal of control over the exchange and transfer of ALL information through all mediums (online, offline, thought, radio, ect)

I am a little scared and nervous of one entity having so much control of information and the transfer or information.

[uberman]

Obviously, the purchase makes sense for Google. Simply 'cos customer loyalty in social networking sites is more difficult to create & replicate as they discovered with their own Google videos. So better to buy rather than build 'social network loyalty".
Thing you have to admire about Google is their hunger... that even though they are ahead on Search they know they have lots of people on their tail especially in the "social space". Like those Social Search sites that are trying to dent Google's dominance in Search.
Then there is question of copyright problem. But there is growing % of Youtube videos that are original and Google may have their inside numbers that that % is big enough. Google also has the capability to put together the technology to control copyright infringements.
:)

[Zedzero]

afaik;

- youtube is in some very serious debt. they have almost no revenue, and very high server and bandwidth costs.
- they're trying to sell the business, but no one wants to buy, because music companies are waiting for someone big to buy youtube, so that they can sue them for copyright infringements. that is also the only reason why we are still seeing music videos, etc. on youtube.
- if google wants to buy youtube, they certainly will. imagine what happens if google kicks youtube from adsense because of "uncopyrighted material, blah blah".

[ravianz]

imagine what happens if google kicks youtube from adsense because of "uncopyrighted material,

would be interesting!

[MarketingInstitute]

Wowzer, $1.6 billion is some serious dough!!

[Raisin]

- they're trying to sell the business, but no one wants to buy, because music companies are waiting for someone big to buy youtube, so that they can sue them for copyright infringements. that is also the only reason why we are still seeing music videos, etc. on youtube.


That is the most idiotic strategy a copyright holder could ever come up with. The longer you wait to enforce a copyright the more likely you are to lose it. Most lawsuits like this are not money making ventures; they're expensive and take years to complete. It's usually a desperate company that resorts to lawsuits for money.

The reason YouTube isn't swamped with lawsuits is because they haven't done anything wrong. They're not the ones who posted the videos in the first place and remove them when requested. The main reason music companies are not making a huge fuss is because of the promotional value YouTube has on the videos being shown. YouTube today is what MTV was in the 80's and early 90's. Last I heard YouTube and the music industry were negotiating a deal sorta like what yahoo has with their streaming music service. Which is a lot smarter then sitting around waiting for a buyout that may or may not happen, in the hopes that you can sue the new owner, and then get a big cash settlement five years down the road.

[mad4]

Nobody could sue youtube and get any money. The only winners would be the lawyers.

[Zedzero]

That is the most idiotic strategy a copyright holder could ever come up with. The longer you wait to enforce a copyright the more likely you are to lose it. Most lawsuits like this are not money making ventures; they're expensive and take years to complete. It's usually a desperate company that resorts to lawsuits for money.

The reason YouTube isn't swamped with lawsuits is because they haven't done anything wrong. They're not the ones who posted the videos in the first place and remove them when requested. The main reason music companies are not making a huge fuss is because of the promotional value YouTube has on the videos being shown. YouTube today is what MTV was in the 80's and early 90's. Last I heard YouTube and the music industry were negotiating a deal sorta like what yahoo has with their streaming music service. Which is a lot smarter then sitting around waiting for a buyout that may or may not happen, in the hopes that you can sue the new owner, and then get a big cash settlement five years down the road.

ok, tell me how abc will get advantage of "promotional value" from long waited lost s03e01 episode with no commercials which can be found easily on youtube. are fans going to buy dvds and watch other episodes on tv? no, they are going to watch all episodes on youtube.

and not being responsible for the content just because members posted them is pure bs. everyone is responsible for the content they have, whether it is uploaded by members or came from outer space.

[qwestcommunications]

Well, $1.5billion for Youtube might be a sniff considering some experts claiming the value of Myspace could exceed $15 billion in the next few years. One of the founders of Myspace is considering taking News Corporation (Murdoch's holding company) to court because he feels analysts working on the sale acted to dampen the perceived value of Myspace at the time of the sale. I am sure Google will extract huge ad revenues off Youtube. No company is better at extracting the ad dollar than google.

[Raisin]

ok, tell me how abc will get advantage of "promotional value" from long waited lost s03e01 episode with no commercials which can be found easily on youtube. are fans going to buy dvds and watch other episodes on tv? no, they are going to watch all episodes on youtube.

and not being responsible for the content just because members posted them is pure bs. everyone is responsible for the content they have, whether it is uploaded by members or came from outer space.

A 10 minute, low compression, and stereo sound video of Lost is not going to compete very well with the DVD boxset. If ABC was worried about this they'd have YouTube host their own high quality videos with commercials embedded. Which by the way it won't be long before you see full length episodes hosted this way.

YouTube's only responsibility is to remove content when requested, and or hand over the IP of the user who uploaded it, if subpoenaed. It's the same as if I posted copyrighted info onto this message board. If the copyright holder contacted Shawn about it and he responded by removing the content, then there would be no valid case for the copyright holder to sue Digitalpoint. I'm responsible for what I post here. Someone can't decide to take Shawn to court instead, simply because he has more money than me. Well, technically they could, but their chances of success would be slim.

In order for a case against YouTube to succeed someone would have to prove that YouTube was designed for the infringement of copyrighted data. Since the majority of the content on YouTube is freely submitted by its creators; this makes for a hard argument for someone to claim that YouTube only exists to infringe on someones copyright.

[Sharpseo]

The longer you wait to enforce a copyright the more likely you are to lose it.

I don't think you can just lose a copyright. If you don't enforce your Trademark, you can lose that. But I've never heard of anyone losing their copyright to material they produced. How would that even work?

[forumrating]

seems a smart deal by google, m sure they will capitalize on it quickly !!

[Raisin]

I don't think you can just lose a copyright. If you don't enforce your Trademark, you can lose that. But I've never heard of anyone losing their copyright to material they produced. How would that even work?

I probably could have worded that better. I was referring to a lawsuit rather than the copyright itself. Legally you hold a copyright until it expires or you surrender your rights. Most companies are quick to enforce their rights because they're afraid that if they don't it could fall into public domain. Imagine if someone created something twenty years ago, but didn't do anything to stop people from copying it and using it as they please. What if they suddenly tried to enforce it today and make everyone pay up? I'm not sure what would happen, but I do know it will be much harder for them because they waited twenty years.

[abuzant]

well well... Rich... Richer :D

[SoniCute]

Love people talk about this news,but I dont care as long as you tube is not mine :D

[WebmasterWanabe]

My father called me a you tube when I was a kid...I removed all the tubes from his big old Zenith television... OH wait that was you boob he called me not you tube.. 1.6 Billion WOW

[IamNed]

Not that much money. It is worth it though. Some of You guys seem to be missing the bigger picture of all of this.

[stoney]

Yeh, I think they'll do it

[SNaRe]

My new video blog will be more popular :D

[hhheng]

Looks like Google has a lot of of spare money to spend out!

[w3bmaster]

Intresting rumor will wait and see

[Emperor]

I think the deal will be close today, everyone is talking about it.

[gemini181]

I still only ever clocked around 10 myspace page impressions. It's the biggest piece of visual junk I've EVER seen. Worse than Geocities. I just refuse to get anywhere near it.

Based on that and assuming I'm not the only one of that opinion, I can see a competitor beat Murdoch and his nonsense-media outfit.

I agree about MySpace being an instant turn-off and visual junk. Some of my 'friends' seem to really like me :rolleyes:, but I've just been ignoring the whole, nasty place.

[Marx]

Sounds crazy to me like the old dot.com bubble, huge over inflated valuations, sellers seem to battle selling sites for 12x their revenue in these forums so 1.6 Billion must be about 1200000X uTube's current revenue :cool:

[T0PS3O]

Last time I heard YT was loosing money like the US government's deficit. Bandwidth bills were rising skyhigh. So the valuation multiple was actually a negative one. :)

[mad4]

Sounds crazy to me like the old dot.com bubble, huge over inflated valuations, sellers seem to battle selling sites for 12x their revenue in these forums so 1.6 Billion must be about 1200000X uTube's current revenue :cool:

Maybe 12 times the potential revenue. Imagine how much youtube would make if the bandwidth costs disappeared (which they would with Googles server resources).

Also if all the revenue from the ads went to google without giving some to youtube they would double the revenue straight away.

[T0PS3O]

Google also owns a lot of fibre so they don't have to lease bandwidth.

And with owning Blogger they probably have smoe advanced anti-comment spam algos available - that's been YT's biggest problem (after bandwidth).

They'd have a massive market share - the smaller Video sites won't be very happy me thinks, if they pull this off indeed. But it's still a big nightmare they'd be buying so I'm not sure they'll actually buy it.

[axemedia]

Just a few weeks ago YouTube's copyright woes were practicaly eliminated.

Warner Music gave them license to braodcast any of their music and videos. The liscense is extended to YouTube users who wish to use the copyrighted works to create their own movies, sampling music or vid clips from Warners stuff. Warner is uploading its entire cataloge of videos. For this Warner takes a small cut in YouTubes revenues.

Universal was threatening to sue for a long time now but changed their tune and are following Warners lead.

Days after the Warner deal, Cingular cell anounced its spoonsorship of the YouTube battle of the bands. A competition where amature musicians submit their music videos and YouTuber's vote. Winners get record deals 'n stuff.

Other big advertisers are beginning to line up at YouTubes door to get their ads in front of those millions of viewers. YouTube traffic is gold compared to MySpace. Who wants to market to 14 year olds when you can reach 20 to 35 year olds?

This came in the nick of time for YouTube. They've burned through 11 million in VC capital with very little revenue coming in. All the big advertisers were affraid to get pulled into the dark cloud of lawsuits that were hovering over YouTube.

Now is a perfect time for Google to buy. And why do they want it when they already have Google Video? Because if they dont someone else will. YouTube is funded by venture capital money, so their intention all along has been to sell and, now that the lawsuit issues appear to be at bay, their valuation has skyrocketed. Now is the time to sell.

YouTube has 50% of the entire US video website market. It is simply "THE" brand. Google video on its own could never attain that. Good luck Murdoch.

Why wouldn't Google want it?

[natekapi]

The same VC's who invested in Google are behind YouTube's financing so you would think that would help the deal too, if they have a good relationship still.

[MythIP]

Well, that would be a good reason but then Google will have 2 similar things going. Will Google merge YouTube and Google Videos?

A common domain where people can upload videos and search for videos on the Internet would rock. That would be the biggest online videos hub & impossible to beat by any company.

I would be a smart move. Some day we may even have the answer to who owns the internet? Google. :)

[wiggly123]

http://www.blogmaverick.com/ (http://www.blogmaverick.com)

Mark Cuban's got a good take on this.

[CedarCity]

hmmm i just saw this..
Only a "moron" would buy YouTube: Mark Cuban (http://news.yahoo.com/s/nm/media_youtube_dc)

He probally has a bid in on it. I would say stuff like that 2 if I wanted to buy it.

[natekapi]

Mark Cuban should stick to sports.

PS: What billionaire can't get into Bungalow 8? Mark Cuban!!

[ArcticPro]

It's just a rumor.

[PayItForward]

I still only ever clocked around 10 myspace page impressions. It's the biggest piece of visual junk I've EVER seen. Worse than Geocities. I just refuse to get anywhere near it.

Based on that and assuming I'm not the only one of that opinion, I can see a competitor beat Murdoch and his nonsense-media outfit.

Geocities was the leader of its time though. They didn't even try to keep up though. It seems like even 10 years later, they've refused to adapt.

[superrichguy]

I dont care for youtube...too much garbage on there.. i can never find anything good

[axemedia]

I dont care for youtube...too much garbage on there.. i can never find anything good

You have no ninja skillz.

I look forward to killing you soon. :)

[IamNed]

^^ not funny

Anyway, looks like the deal will go through and google will go up and add another 10 billion of market cap

So easy to make moeny with google stock. I've been a shareholdfer for over a year and have made a small fortune.

Trying to free up more funds to buy more google stock since it will got to $3000 a share soon.

I figure that before google decides to reprocess 95% of humanity deemed 'unfit for type 1 civilization' into little more than cat chow or matrix batteries, I should make some easy money and stock up on some firearms cause im not going to let them turn me into cat chow or a battery.

[Emperor]

The deal will more than likely go thru. After doing some searches and reading a few articles I’m starting to think this is a very good thing for Google and for Youtube. I think that YouTube doesn’t have any option in the matter, it must sell or die.

If anyone is interested on my blog (http://www.deliriumpropaganda.com) I’ve listed the positive and negative aspects that I found.

[trichnosis]

it's interesting , they have google video???

[UnderEstimated]

Ah just saw the news on CNN


Google is buying the YouTube for 1.65 Billion $ in stock.


damn 1.65 billion:eek:

http://news.yahoo.com/s/ap/20061009/ap_on_bi_ge/google_youtube


http://www.cnn.com/2006/TECH/biztech/10/09/google.youtube.ap/index.html

[BGray]

Wow! If this goes through it will be an amazing deal for the YouTube guys.

[dotcom360]

Are you sure they bought ? I read they are just planinng to buy it.

[UnderEstimated]

it was just now in the situation room on CNN.

[pig2cat]

http://money.cnn.com/2006/10/09/technology/googleyoutube_deal/index.htm?cnn=yes

its on cnn
but they havent bought it yet..

[anurag_online]

YouTube could go for $1.6 billion not gone yet but this will be the best day for you tube guys

[discoverclips]

google did / will do a good move buying youtube

[UnderEstimated]

google did / will do a good move buying youtube

it will not be good for those who dont have copyrighted stuff on YouTube. And they will sell movies and other videos like Google Videos.

[carl_in_florida]

Didn't someone post the pic of the corporate office of YouTube and it was like a dungeon?

Unbelievable.

I am now willing to sell my MySpace resource site for 1.1B That's half a billion less! Don't wait!

[chaoward]

I wonder if it has anything to do with youtube stealing the spotlight just when google video was starting to get really popular? It's fine with me, I'd rather see youtube in google's hands rather than Fox or CBS.

[Velocity]

yes, it definitely happened
http://news.yahoo.com/s/ap/20061009/ap_on_bi_ge/google_youtube

[pjk]

IMO, it is a horrible deal for google to buy YT for $1.6B. However, google must think they can earn it back if they are willing to pay that. I think google could pass YT if they worked at it enough.

[anurag_online]

yes, it definitely happened
http://news.yahoo.com/s/ap/20061009/ap_on_bi_ge/google_youtube


In INR its wooping Rs.756 crore!!!! my good heavens!!!!

[Sem-Advance]

Google Corporate Philosophy # 638

If we put out a product (google video) and anyone does it better than we do, we will just buy them out (youtube).......no more competitor..

feel free to insert your own items in the ( )

:D

[dotcom360]

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

Thats ridiculous!

[jawinn]

What's really crazy is that the guys that founded youtube are 27 and 29.

[Sem-Advance]

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

Thats ridiculous!

What is even more assinine is nobody is sure Googles valuation is correct.....theyre stock can drop and if history repeats itself like it often does there is going to be a Google correction that is going to hurt a lot of people :D

Think any tech company and stock plumments - orcale dell microsoft aol etc...

[anandnadaar]

now that is really huge amount for a website Rs.756 crore!!!! and still 27 and 29.. hhmm thats brilliant for that age..

[blade_922]

http://digg.com/business_finance/Google_Agrees_to_buy_Video_Site_Youtube_for_1_65_Billion

What an investment for them. Man google are growing like crazy. I wouldnt be surprised if they ended up owning the entire internet in a couple of centuries.

[Tajzai]

If you guys have yet to notice that people watching tv shows, movies has DROPPED. Reason? the internet
With the power of youtube and google video, they can reach a new brand of marketers. Dont be surprised in a few months when you see a mcdonalds ad before you watch your youtube clip.

[RedruM*]

this is nothing , you seen what Myspace is valued at?

[LinkBliss]

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

What's next? While Google buy DigitalPoint.com?

Eric

[Robert Allen]

According to this post, they are buying it for $1.65billion

http://www.musicwires.com/showthread.php?p=1590#post1590

Robert

Edit: It is offical: http://news.bbc.co.uk/1/hi/business/6034577.stm

[T0PS3O]

They'll buy Microsoft next. Or at least their underperforming arm, MSN.

[w3bmaster]

Lol i wished youtube was mine ....

[Robert Allen]

http://forums.digitalpoint.com/showthread.php?t=154123&page=7

There is already a thread about this.

Rob

[lpstong]

And yes it is official its even on Yahoo News (http://news.yahoo.com/s/ap/20061009/ap_on_bi_ge/google_youtube)

And that it says:

YouTube will continue to retain its brand, as well as all 67 employees, including co-founders Chad Hurley and Steve Chen. The deal is expected to close in the fourth quarter of this year. So I guess there are some minor things to tink out of the the deal.

As far as copyright issues:

But Hurley and Chen, 27, have spent months cozying up with major media executives in an effort to convince them that YouTube could help them make more money by helping them connect with the growing number of people who spend most of their free time on the Internet.

While Google has been hauling away huge profits from the booming search market, it hasn't been able to become a major player in online video.

That should change now, predicted Forrester Research analyst Charlene Li. "This gives Google the video play they have been looking for and gives them a great opportunity to redefine how advertising is done," she said.

So I am sure that is what is to be worked out eventually. I am sure a big time business would not buy into major trouble unless most of it can be dealt with legally before hand.

[sam2698]

I am still wondering why did they buy it. I mean they were perfectly fine with google videos. It would more understandable if they did not have google videos and then bought youtube. But I am sure that they can use those organic visitors.

[lpstong]

I am still wondering why did they buy it. I mean they were perfectly fine with google videos. It would more understandable if they did not have google videos and then bought youtube. But I am sure that they can use those organic visitors.

It state in the Yahoo story about this:

That should change now, predicted Forrester Research analyst Charlene Li. "This gives Google the video play they have been looking for and gives them a great opportunity to redefine how advertising is done," she said.

[Ohene]

now that is really huge amount for a website Rs.756 crore!!!! and still 27 and 29.. hhmm thats brilliant for that age..

How old do you have to be to know AJAX, Flash and a cool idea?:confused:

[ThisGoatStarves]

$1.6 billion! That's a hell of a lot of cash. Google must have some serious plans for monetizing it.

[DidierE]

$1.6 billion! That's a hell of a lot of cash. Google must have some serious plans for monetizing it.
Yeah, some sort of video adwords i heard

Didier

[Endurer]

Google chief executive Eric Schmidt said in a statement that the two companies were "natural partners" to offer a media entertainment service to users, content owners and advertisers.

Obviously they needed a big publisher that could publish video ads. With Youtube in hands, they have purchased just exactly what the doctor ordered.

[PS3]

Google is getting bigger and bigger. I wonder how Microsoft and Yahoo are going to fight back because let me tell you this war has just begun. Microsoft is not going to stay with there hands behind there back neither is Yahoo.

[mehbooba]

why would anyone pay $1.65b for a site that has only got a PR of 5 ?

:-)

[Endurer]

Google is getting bigger and bigger. I wonder how Microsoft and Yahoo are going to fight back because let me tell you this war has just begun. Microsoft is not going to stay with there hands behind there back neither is Yahoo.

I am not sure about Yahoo but Microsoft is way behind the game. They are doing too many things at the same time and neither one of those so-called ventures has impressed me.

why would anyone pay $1.65b for a site that has only got a PR of 5 ?

:-)

I don't think it's far too complex to fathom for a person posting at DP.

[boxer126]

why would anyone pay $1.65b for a site that has only got a PR of 5 ?

:-)

LOL! I wonder if they'll take $10/mo. for a text link to my arcade!

-boxer126

[jaybong]

3 days ago on page 2 of this thread.

I bet you $1000 they will not buy Youtube.

[Raisin]

I would like to take this moment to say, I told you so! To all the nay sayers who said this wouldn't happen.

[T0PS3O]

Google buys market leader in online video...

News item goes:

While Google has been hauling away huge profits from the booming search market, it hasn't been able to become a major player in online video.

That should change now, predicted Forrester Research analyst Charlene Li.

Wow! Where do they get those analysts?!

[Zany_Jim]

why would anyone pay $1.65b for a site that has only got a PR of 5 ?

:-)

Will be interesting to see how quickly that will rise to 10 :p

Also i wonder how Youtubes search rankings will be :cool:

[x3sphere]

Google buys market leader in online video...

News item goes:

While Google has been hauling away huge profits from the booming search market, it hasn't been able to become a major player in online video.

That should change now, predicted Forrester Research analyst Charlene Li.

Wow! Where do they get those analysts?!

LOL, smart analyst I must say :o

[northpointaiki]

Well, there goes the neighborhood:

Google Buys Youtube (http://articles.moneycentral.msn.com/Investing/CNBC/Dispatch/GoogleBuysYouTube%20(1052484).aspx?GT1=8689).

[zee]

YouTube was faaaaaaaaaarrrrrrr much better than Google Video. I think we all know that. They bought blogspot when it wasn't THAT hot, and now, look at Blogspot!!! They are the king of blogging. Youtube could always easily kick google video butt!

Good purchase for google!

[lorien1973]

How can I turn my non-profitable business into 1.6 billion dollars? :confused:

[clancey]

Google has bought YouTube for U.S. $1.65 billion! http://www.nzherald.co.nz/section/story.cfm?c_id=3&ObjectID=10405196

There are several articles about the deal on the net. What will this mean for YouTube? Death? End of the plagiarized content? Lawsuits for Google? The birth of a new monopolist?

[superrichguy]

$1.65 billion??? wow thats a lil steep is it true? How come only UK papers say it is? I cant find any US articles?

[clancey]

That's not bad. YouTube was created in February 2005 for a sweet $92 million per month ROI!

[seoindia]

yesterday i heard news that Google planning to buy YouTube. Well link do verify that, lets wait for official google announcement.

[Blogmaster]

Thanks, great info!

[Connections]

lol its funny that new zealend new would post this first lol...

I will wait for a more legit source thanks.

[Blogmaster]

lol its funny that new zealend new would post this first lol...

I will wait for a more legit source thanks.

true or false, this is making big headlines everywhere right now ...

[eli03]

same topic here http://forums.digitalpoint.com/showthread.php?t=154123

[Connections]

copyrighted music material which takes seconds to find on youtube lol....
all of the following have been on youtube for the last 9 months and are in the honour's lists -

http://www.youtube.com/watch?v=LYnTAAsl2OU
http://www.youtube.com/watch?v=JpeWDsO0pNQ
http://www.youtube.com/watch?v=UPavzz0e8MA
http://www.youtube.com/watch?v=9SoC1T0nx7Y
http://www.youtube.com/watch?v=eEMdfL1ePnQ

aslo I love this one the guy who owns this video or clims to is a director lmao

http://www.youtube.com/watch?v=UIaVFMOOr4w


this is going to be a lawsuite headach for google lols

[Connections]

http://www.google.com/intl/en/press/pressrel/google_youtube.html

[Connections]

http://www.google.com/intl/en/press/pressrel/google_youtube.html

[guru-seo]

In my opinion a waste of money. They should have used that money to going back to becoming a good search engine again instead they are becoming more and more a business which only cares about the bottom line. What made Google great in the first place were people now its just another money making machine where quality has taken a backseat to profit making.

[seoindia]

According to it - Google agreed to acquire YouTube, i suppose deal is not over yet.

http://www.google.com/intl/en/press/pressrel/google_youtube.html

[lorien1973]

In my opinion a waste of money. They should have used that money to going back to becoming a good search engine again instead they are becoming more and more a business which only cares about the bottom line. What made Google great in the first place were people now its just another money making machine where quality has taken a backseat to profit making.
Who said it a few days ago? Only a moron would buy youtube. Guess google was that moron.

[seoindia]

Lol, good post dude:D , If google is a Moron than one can expect what all other search engines are.

Who said it a few days ago? Only a moron would buy youtube. Guess google was that moron.

[lorien1973]

Here it is! Mark Cuban

http://money.cnn.tv/2006/09/29/technology/youtube_cuban.reut/index.htm

[Motter]

In my opinion a waste of money. They should have used that money to going back to becoming a good search engine again instead they are becoming more and more a business which only cares about the bottom line. What made Google great in the first place were people now its just another money making machine where quality has taken a backseat to profit making.

yeah I guess we will have to see how they use youtube as a tool.

if they continue youtube as a seperate entity that it's a good choice to aquire it and with the future of video on the net it's probably a steal. If they turn it into a google company that it is a very bad idea.

for your comment on them becoming a good search company they still are the best and continue to move forward with things like google video being integrated within the search bar.

I just hope they continue youtube on the path that it is on.

[d16man]

figures...google wants total domination...

[IamNed]

Google want to control the entire internet and eventually the transfer and exchange of all information though all mediums. It is very possible that they will succeed. I don't feel very comfortable about the prospects of this.

[gr8liverpoolfan]

Google want to control the entire internet and eventually the transfer and exchange of all information though all mediums. It is very possible that they will succeed. I don't feel very comfortable about the prospects of this.

They won't buy Microsoft;) I am not sure whether that money was spent well for reasons which have been stated umpteen times in this thread already , but whatever it is...G has bought Youtube and we have to live with it:)

And according to G, "YouTube will retain its distinct brand identity, strengthening and complementing Google's own fast-growing video business. YouTube will continue to be based in San Bruno, CA, and all YouTube employees will remain with the company"..

[Michael_Goldman]

I wonder how much is youtube making to google with adsense..

[phree_radical]

It's possible Google is a nice company and shows us at least a hint of the progress..

[Pammer]

Definately, Msn and yahoo will take any action :P


I wonder how much is youtube making to google with adsense..

I think they havent used google adsense... but i saw one time on header parts, but never see again.

[axemedia]

This has been a well crafted business deal that has likely been in the works for many months (if not since the begining, this is what Venture Capital firms do)

I head a rumour (i think it was mentioned in this thread, too) that the VC money that was funding YouTube is the same VC that assisited Google back in its start up phase.

The story line I see over the past month (outlined in my previous post (http://forums.digitalpoint.com/showpost.php?p=1543743&postcount=106) ) shows the shift by the major music and movie publishers, from threatening lawsuits to joining the game, and the subsequant flow of big advertiser dollars to the once doomed YouTube and now a done deal with Google.

Sounds like a perfectly executed plan to me.

All interested parties; YouTube, VC, Movie/Music publishers, Potential Advertisers, and Google, and of course everyones lawyers; all got toghether over drinks, or a round of golf, to discuss this and iron out a solution that keeps everybody happy, and everyone making money.

$1.65 Billioin is a very reasonable price in my opinion. MySpace sold for just under 1/2 billion a year ago, or so. A couple months ago Google signed an advertising deal worth over half a billion to MySpace. So Rupert Murdock has already recovered his investment and more. Thats just the one deal, adsense is not the only advertising on MySpace.

YouTube is a much more desirable advertising medium than MySpace due to its older demographic. YouTube will be profitable for Google.

I'm curious to know what percentage the two guys who started YouTube got out of this deal. I hope they got at least 50% (25 each) but it is probably not quite that high. Still a nice payout anyways.

Congratulations to everyone involved.

[edwinsoft]

"How to be a billionaire in less than 20mths"

[ThisBuzz]

The BBC are on it now as well, is this now a done deal?

Google buys YouTube for $1.65bn
YouTube
YouTube is growing in popularity
Google is buying video-sharing website YouTube for $1.65bn (£883m) in shares after a weekend of speculation that a deal was in the offing.

The two companies will continue to operate independently, Google said as it announced the news on Monday.

[koolasia]

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.
Reaction

The deal is a good move for Google, said analyst Aram Sinnreich, founder and managing partner with Radar Research, a Los Angeles technology and media research firm.

"$1.65 billion is certainly a lot, but for a company like Google who will be using it as part of an integrated cross-media advertising strategy it may actually pay off," said Sinnreich. "There aren't a whole lot of companies left to acquire with this kind of reach online," he added.

Analysts also noted the similarities between the corporate cultures and how the companies developed and have grown. "Google has become a huge brand without advertising--same with YouTube," said David Hallerman, a senior analyst at Emarketer in New York.

Because YouTube has registered users, Google over time will know more about user behavior, which will enable the company to target advertising, he said.

Although Google executives adamantly said otherwise, Hallerman doesn't think there is a future in the YouTube brand name. "YouTube is a silly name," he said. "Google will get rid of it over time."

Source - Pcworld

[121603]

wow.. as in wow. :O

[dotcompals]

Yes, I can confirm it, just an hour ago I saw the news item on CNN.

[Bondat]

Good buy.
Do you think Google will be strict on copyright videos?
Because I have watched few videos in Youtube that is copyrighted materials.

[BIGC]

Google buys YouTube for $1.65 billion

http://www.msnbc.msn.com/id/15196982/

[ExoticCarSite.com]

Yup, just saw it on my 6 oclock news.

I predicted this long ago, but never jumped on the bandwagon due to laziness.

[dhruv37]

Well..Its good news but I think G need to work something on copyright issuses on youtube.com

[atiqi36]

This is truely amazing. Youtube started last year feb 2005 and after one year they are selling it for more then £800 million . That is amazing.

[seodelhi]

Now get ready to watch google ads in you tube.

[Tyler Banfield]

Now get ready to watch google ads in you tube.

Hopefully not, that would get annoying pretty damn quickly

[RedruM*]

lol , google owns adsense , why rent ads on there , when they can make a direct profit.

[Tyler Banfield]

I just hope they don't try the insert ads before or after a video.

[damnidunno]

The guys who made youtube are lucky.

so what is google going to gain out of this if youtube is going to be separate and independent and wont have the Google brand name all over?

I also read that google will still operate google video. So im lost and dunno what the point is.

[amnezia]

can i be first to coin the phrase

GoogTube

:)

[RedruM*]

The guys who made youtube are lucky.

so what is google going to gain out of this if youtube is going to be separate and independent and wont have the Google brand name all over?

I also read that google will still operate google video. So im lost and dunno what the point is.

google will own 99.9 percent of the internet video market.

worth billions....

[damnidunno]

google will own 99.9 percent of the internet video market.

worth billions....

yeah but if they dont sell anything or put google adverts everywhere, how is it going to make google bigger?

Are they jsut going to put google ads on everything?

I hope they dont end up closing google video because all my sites videos are hosted there :P

[pondlife]

Not sure if this has been posted already (apologies if it has) it's quite a nice analysis of the story: BBC News - YouTube Purchase (http://news.bbc.co.uk/2/hi/business/6036023.stm)
Cheers

[mastermemei]

I still dont know if this is a good or bad news.

Well, google have the resources to massively improve youtube's services but then we have to expect all those advertisement before, after or maybe within the video

[mad4]

youtube is doing good business,i dont think they will sell it any cost
:o
I think it will just stay a rumor.

I call BS on this. I've noticed something about YT recently that would suggest to me that they are indeed in talks to sell the site, but Google? Hell no.
:o
It's just rumours, it won't happen.
:o
I bet you $1000 they will not buy Youtube.

Payment by paypal please. I will PM you my address.:)

[cybercool]

google arent in theory paying a penny for YouTube. its all being paid for out of google stock. so its a win win situation for both sides. no cash depletion for google, and youtube guys get highly valued stock.

[check]

To the people who said "Just Rumors, it will never happen":


HA! :D

[jaybong]

Check out http://www.gootube.net/

googtube.com, googletube.com and googtube.net are all parked.

[mddv]

The site has been alive for about 18 months now and look how much it was sold for.

Article
http://today.reuters.com/news/articlenews.aspx?type=domesticNews&storyID=2006-10-10T104656Z_01_WEN6650_RTRUKOC_0_US-MEDIA-GOOGLE.xml&WTmodLoc=USNewsHome_C1_%5BFeed%5D-8

I wish my site sells for that one day.

[Ezo]

Why would Google buy Youtube when they have their very own Google Videos?

They already own the Most used Search engine
and now they are going for the monopoly of the Video Search engine.

[Michael_Goldman]

ummm i got a site which is 18 months old as well and it has adsense... maybe I could sell it for a billion bucks to google as well :D

[IamNed]

Why even have a world wide web? It should just be called googleweb. At some point there wont be anyting on the internet left but google.

[clancey]

Good buy.
Do you think Google will be strict on copyright videos?
Because I have watched few videos in Youtube that is copyrighted materials.

You would think Google needs to become be strict when it comes to the availability of copyrighted material on YouTube.

However, it may argue that video snippets are the same as text snippets from copyrighted books. Google has the money to fight large scale lawsuits from the entertainment industry -- just the same as it has the money to fight the suit brought by the Association of American Publishers for its Google Book Search project.

An article about that notes:

Publishers and authors are concerned that the project does not adhere to current copyright law, which mandates that permission must be asked of copyright holders before publishing works. Google has taken the line that authors and publishers may “opt out” of having their works included in the project, rather than that they must “opt in”.

Will Google will use the same approach with YouTube?

Having said that, there will be a mountain of music videos and clips available to YouTube under agrements that Google and YouTube had already forged with some of the major music companies.

I saw some speculation Google might seek to wrap targetted advertising around pirated material . . . allowing the "piratee" to convert the original theft into a future sales opportunity . . . earning money for them and Google.

[IamNed]

One important factor to consider is how many people watch stupid lame homemade videos versus copyright media like music videos, TV clips, ect.

I expect google will work a deal with the labels and insert ads the the end or start of every music video. Or may have to pull them out.

If google pulled all music videos and other copyright material how much would traffic decline? if ads were inserted how much would traffic decline? I suspect the later would result in an small decline.

I only use youtube to listen to music. I don't care for the homemade crap. I can find almost ANY music video or song on youtube and it is free without any ads. There is something wrong with that picture. It defies economic mantra of 'No such thing as a free lunch'.

[geckotales]

I heard a thing on NPR this morning about this deal. Some expert was saying that if Google installs ads in the videos it will kill the site and people will go elsewhere. If they serve ads to the side they will do fine. If someone is watching a video on climbing the ads would be about climbing. It's the same thing Google has been doing for the most part.

[IamNed]

Ads will only be shown for sopyright stuff I suspect. Not homemade videos.

[LinkBliss]

can i be first to coin the phrase
GoogTube

No, look at the subject line.

Goo Tube makes a lot more sense.

Why insert the extra consanent?

Eric

[felix]

Looks like even the founders of YouTube are having trouble keeping a straight face over this one:

http://www.youtube.com/watch?v=QCVxQ_3Ejkg

[seeyalater]

Google is taking over the world....What's next? a Google OS?

[ravianz]

Google is taking over the world....What's next? a Google OS?
i'm also waiting to test GOS (Google OS)

[ArcticPro]

Waste of $1.6 billion.

[moneymakingguru]

Ever played Monopoly?

Why would Google buy Youtube when they have their very own Google Videos?

[Sem-Advance]

Wendy Davis from search insider had a great article today.

In it she wrote the technology that Google bought cost somewhere around $100,000,000.00 and they already had the technology in place so that dollar amount is flushed down the toilet.

So what Google bought was the user base which cost $1,500,000,000.00

Seems a pretty damn stupid waste of money considering most of the YouTube crowd probably already uses Google...

I would bet Google looses at least 30% of that user base, as that amount seems a good estimate, at the amount of people soon to be alienated by the purchase.

Bright minds????? :rolleyes:

[Snurf]

WOWO! $1.65 billion! I wonder if they will change the name.

[decepti0n]

Haha

If I had billions of spare cash lying around I'd buy it. They should buy Yahoo just to be the badass 'in your face im rich bitch' (es) of the internet.

Still, combining two of the biggest sites on the net can't be bad. Wonder if they'll buy things like craigslist as well.

[pjk]

IMO, Google will lose out on this. They must have some great ideas in mind and think they will earn it back to be willing to pay that. Man, those YouTube guys must be livin it right now.

[alexdale]

Google: If you can't beat 'em, buy 'em (Google Video vs. Youtube) :D

[Michael_Goldman]

interesting how will google video and youtube (http://blog.findinforums.com/google-bought-youtubecom-for-165-billions/) merge now..

[Link.ezer.com]

youtube shall be a very good company...

PR jumps from PR5 to PR8 this update :eek:

http://livepr.ezer.com/index.asp?livePR=www.youtube.com

[mad4]

I doubt it somehow. They are keeping it the same.

[yfs1]

This thread is definately comic relief...I love it when guys making like $5 a day post about how stupid Google is and how they are throwing away money for no reason, etc

[Link.ezer.com]

I doubt it somehow. They are keeping it the same.

they may need to keep two names until next stock-holder-meeting

[SUP3RNOVA]

Haha crazy. Imagine if you were one of the guys that started Youtube.

[gr8liverpoolfan]

Tool late u r mate :)
http://forums.digitalpoint.com/showthread.php?t=154123

[bigrollerdave]

1.65 you made a typo. If I was them I would move to some awesome island and just sit on the beach all day long and enjoy life.

[LinkBliss]

Imagine if you were one of the guys that started Youtube.

It seems like whenever there is a good idea like digg or youtube or myspace there are ten to fifty start-ups chasing after the same wave, trying to get rich, and my bet is THAT THEY ALL DO, so what if metacafe or the many smaller video players only make 1/100th of what the youtube founders made? they can still retire.

Eric

[Madness]

I bet you $1000 they will not buy Youtube.

Is this a open bet? will pm me paypal info:D

[James Woods]

interesting how will google video and youtube (http://blog.findinforums.com/google-bought-youtubecom-for-165-billions/) merge now..

Uh, they won't.

they are keeping the two seperate for a few reasons, two being that if they change the name then it could ruin the userbase and because the site is sue-city, and they don't want to attach their name to it. Smart really.

BTW they didn't give them cash, they gave them stock, so these two idiots could still stand to lose a lot of money from this.

[Michael_Goldman]

Are you the real James Woods (http://www.imdb.com/name/nm0000249/)?

just trying to figure out what would an actor do in a webmaster forum :confused: :eek:

yeah such deals are usually done in stocks google's relevancy sucks lately, but google is bringing lots of cool new services, so hard to say if they'll lose or not .. :)

[Pammer]

Are you the real James Woods (http://www.imdb.com/name/nm0000249/)?

just trying to figure out what would an actor do in a webmaster forum .



ISnt Who is the hottest guy on DP? (http://forums.digitalpoint.com/showthread.php?t=136856) so popular :o

Maybe he is just like you Michael_Goldman (http://en.wikipedia.org/wiki/Michael_Goldman) :D is it you?

or isnt Internet marketing so popular... ?

[IamNed]

Uh, they won't.

two idiots could still stand to lose a lot of money from this.

Even if they get 30% of 1.65 bilion I dont see how that would be possible...

[idotcom]

I think google sucks for trying to steal the video market. I hope youtubers flame on this and dump youtube/google. Now would be the time for someone else to start or launch a video alternative...

I will buy a bottle of crystal to celebrate if this stock for stock transaction kicks google in the ass. Those damn monopolizing fools. FOCUS ON SEARCH DAMNIT! I mean... Dogpile beat google?