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Goo Tube - Google buys Youtube for $1.6 billion

Discussion in 'Google' started by mad4, Oct 6, 2006.

  1. d16man

    d16man Well-Known Member

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    #181
    figures...google wants total domination...
    SEMrush
     
    d16man, Oct 9, 2006 IP
    SEMrush
  2. IamNed

    IamNed Peon

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    #182
    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.
     
    IamNed, Oct 9, 2006 IP
  3. gr8liverpoolfan

    gr8liverpoolfan Notable Member

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    #183
    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"..
     
    gr8liverpoolfan, Oct 9, 2006 IP
  4. DomainMagnate

    DomainMagnate Illustrious Member

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    #184
    I wonder how much is youtube making to google with adsense..
     
    DomainMagnate, Oct 9, 2006 IP
  5. phree_radical

    phree_radical Peon

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    #185
    It's possible Google is a nice company and shows us at least a hint of the progress..
     
    phree_radical, Oct 9, 2006 IP
  6. Pammer

    Pammer Notable Member

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    #186
    Definately, Msn and yahoo will take any action :p


    I think they havent used google adsense... but i saw one time on header parts, but never see again.
     
    Pammer, Oct 9, 2006 IP
  7. axemedia

    axemedia Guest

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    #187
    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 ) 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.
     
    axemedia, Oct 9, 2006 IP
  8. edwinsoft

    edwinsoft Peon

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    #188
    "How to be a billionaire in less than 20mths"
     
    edwinsoft, Oct 9, 2006 IP
  9. ThisBuzz

    ThisBuzz Peon

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    #189
    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.
     
    ThisBuzz, Oct 9, 2006 IP
  10. koolasia

    koolasia Banned

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    #190
    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
     
    koolasia, Oct 10, 2006 IP
  11. 121603

    121603 Peon

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    #191
    wow.. as in wow. :O
     
    121603, Oct 10, 2006 IP
  12. dotcompals

    dotcompals Prominent Member

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    #192
    Yes, I can confirm it, just an hour ago I saw the news item on CNN.
     
    dotcompals, Oct 10, 2006 IP
  13. Bondat

    Bondat Peon

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    #193
    Good buy.
    Do you think Google will be strict on copyright videos?
    Because I have watched few videos in Youtube that is copyrighted materials.
     
    Bondat, Oct 10, 2006 IP
  14. BIGC

    BIGC Peon

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    #194
    BIGC, Oct 10, 2006 IP
  15. ExoticCarSite.com

    ExoticCarSite.com Active Member

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    #195
    Yup, just saw it on my 6 oclock news.

    I predicted this long ago, but never jumped on the bandwagon due to laziness.
     
    ExoticCarSite.com, Oct 10, 2006 IP
  16. dhruv37

    dhruv37 Well-Known Member

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    #196
    Well..Its good news but I think G need to work something on copyright issuses on youtube.com
     
    dhruv37, Oct 10, 2006 IP
  17. atiqi36

    atiqi36 Well-Known Member

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    #197
    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.
     
    atiqi36, Oct 10, 2006 IP
  18. seodelhi

    seodelhi Active Member

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    #198
    Now get ready to watch google ads in you tube.
     
    seodelhi, Oct 10, 2006 IP
  19. Tyler Banfield

    Tyler Banfield Well-Known Member

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    #199
    Hopefully not, that would get annoying pretty damn quickly
     
    Tyler Banfield, Oct 10, 2006 IP
  20. RedruM*

    RedruM* Peon

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    #200
    lol , google owns adsense , why rent ads on there , when they can make a direct profit.
     
    RedruM*, Oct 10, 2006 IP