Goo Tube - Google buys Youtube for $1.6 billion

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.

 

Youtube is down with the following err:

 

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

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

 

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

 

Just got an email from a newsletter from Word Pro News

 

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.

 

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.

 

Source: WebProNews

What do you think?
I love the video adwords idea

 

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" ?

 

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.

 

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

 

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.

 

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

 

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 ...

 

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.

 

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

 

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.

 

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

 

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.

 

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.