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Google pockets YouTube for $1.65 billion

post #1 of 20
Thread Starter 
Ending a week of rumors, Google on Monday said it has agreed to acquire YouTube for $1.65 billion in a stock-for-stock transaction.

The Mountain View, Calif.-based Internet search giant said YouTube will operate independently following the transaction in order to preserve its successful brand and passionate community.

The acquisition combines one of the largest and fastest growing online video entertainment communities with Google's expertise in organizing information and and its own fledgling video business.

Google said the combined companies will focus on providing a better, more comprehensive experience for users interested in uploading, watching and sharing videos, and will offer new opportunities for professional content owners to distribute their work to reach a vast new audience.

"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," said Google chief executive Eric Schmidt.

"Our companies share similar values; we both always put our users first and are committed to innovating to improve their experience. Together, we are natural partners to offer a compelling media entertainment service to users, content owners and advertisers."

When the acquisition is complete, YouTube will retain its distinct brand identity, strengthening and complementing Google's own fast-growing video business, Google said in a statement. YouTube will continue to be based in San Bruno, CA, and all YouTube employees will remain with the company.

Google said the number of its shares to be issued in the transaction will be determined based on the 30-day average closing price two trading days prior to the completion of the acquisition.

The deal is expected to close in the fourth quarter of 2006.
post #2 of 20
It is a little dangerous for YouTube to be out there by itself with no attachment or protection from a larger company. YouTube now has a better chance of not being over run by a larger competitor.

Inevitably Microsoft is going to take a go at Video itself with MS Live Video or whatever they will call it. MS Live Video will be tied directly into Vista. MS will say its integrated directly into the OS and cannot be removed.
post #3 of 20
The Google CEO is on the Apple board, but beyond that I don't it impacts Apple at all.
post #4 of 20
Quote:
Originally Posted by jesushouston

The Google CEO is on the Apple board, but beyond that I don't it impacts Apple at all.

Some had said Apple should buy YouTube (not me, of course)--and now that YouTube is out of the picture, there are really no more large internet sites like that to be spoken for (MySpace, Facebook and now YouTube).

Plus, this may be of interest from an iPod perspective. Maybe a Apple-Google-YouTube alliance that allows some sort of (original, not copyrighted content) video downloading to the iPod? All without the risk of litigation that Google potentially faces now.
"In Xanadu did Kubla Kahn a stately pleasure-dome decree."
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"In Xanadu did Kubla Kahn a stately pleasure-dome decree."
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post #5 of 20
Google + YouTube = GooTube
post #6 of 20
Quote:
Originally Posted by Johnny Mozzarella

Google + YouTube = GooTube

LOL!

I heard a rumor that Google is in talks with Apple to integrate Google Video support for the iTV device that Apple will launch next year. With the acquisition of YouTube, there will be an even bigger collect of videos for users to stream to their iTV.

I think this is a great move by Google.
post #7 of 20
Quote:
Originally Posted by Mr. Dirk

Plus, this may be of interest from an iPod perspective. Maybe a Apple-Google-YouTube alliance that allows some sort of (original, not copyrighted content) video downloading to the iPod? All without the risk of litigation that Google potentially faces now.

You mean like PodTube?
2.0 GHz MBP / 2GB RAM / 256 MB / 120 GB
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2.0 GHz MBP / 2GB RAM / 256 MB / 120 GB
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post #8 of 20
Quote:
Originally Posted by Mr. Dirk

Some had said Apple should buy YouTube (not me, of course)--and now that YouTube is out of the picture, there are really no more large internet sites like that to be spoken for (MySpace, Facebook and now YouTube).

Plus, this may be of interest from an iPod perspective. Maybe a Apple-Google-YouTube alliance that allows some sort of (original, not copyrighted content) video downloading to the iPod? All without the risk of litigation that Google potentially faces now.

I agree - like this: http://www.soniqcast.com/site/product.html
Come on Apple, get with the program!

Quick, before we all get Zuned!
post #9 of 20
I really don't understand how YouTube isn't barraged with copyright infringement lawsuits. I'd think that once one of the big TV networks stopped turning a blind eye, got their own internet video service going, and realized all those eyeballs could be looking at ads on THEIR site rather than YouTube's, they'd shut down YouTube with a mountain of lawsuits.

- Jasen.
post #10 of 20
Great news, just great. I was praying Microsoft didn't buy YouTube, thank the heavens for that one. Now the iTV only seems more appealing, and the quality and data rate of all that content is only going to improve. When it comes to the iTV, it's all about content, and in that department Apple and Google have spoken, this is absolutely brilliant news.
Citing unnamed sources with limited but direct knowledge of the rumoured device - Comedy Insider (Feb 2014)
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Citing unnamed sources with limited but direct knowledge of the rumoured device - Comedy Insider (Feb 2014)
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post #11 of 20
Quote:
Originally Posted by Ireland

Great news, just great. I was praying Microsoft didn't buy YouTube, thank the heavens for that one. Now the iTV only seems more appealing, and the quality and data rate of all that content is only going to improve. When it comes to the iTV, it's all about content, and in that department Apple and Google have spoken, this is absolutely brilliant news.

Yep. With the recent connection between Apple and Google, this can only be good news. We might see some integration between YouTube and iTunes / iPod / iTV in the not-too-distant future. What's even better is YouTube will most likely be off-limits to Zune.
post #12 of 20
Quote:
Originally Posted by jamezog

What's even better is YouTube will most likely be off-limits to Zune.

Citing unnamed sources with limited but direct knowledge of the rumoured device - Comedy Insider (Feb 2014)
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Citing unnamed sources with limited but direct knowledge of the rumoured device - Comedy Insider (Feb 2014)
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post #13 of 20
Glad I don't have google shares.
post #14 of 20
Quote:
Originally Posted by jasenj1

I really don't understand how YouTube isn't barraged with copyright infringement lawsuits.
- Jasen.

Probably because YouTube didn't have teh big dollars, so sueing them was not worth it. But now that all your YouTube are belong to Google...
post #15 of 20
Slashdot picked up this story, too.

1) Google shares ROSE 5% after this deal - so they (and their shareholders) already made money on the purchase. (On paper, anyway.)

2) Apparently, the way copyright law works, the copyright holder has to notify the infringer before they can actually be considered infringing. So, GooTube is welcome to archive every piece of video ever and unless someone sends a letter saying, "Please stop", they are free to keep using it.

Something seems wrong about that, but maybe not.

- Jasen.
post #16 of 20
What a dumb move by Google. YouTube is but a breath away from being sued into existance. What the hell where they thinking?
post #17 of 20
Quote:
Originally Posted by BEatMaKeR

What a dumb move by Google. YouTube is but a breath away from being sued into existance. What the hell where they thinking?

Gee, you dont think anyone at Google thought to settle all the notions of claims with the industry before they bought YouTube - maybe like when perhaps they were discussing terms and conditions with them in order to provide a nice revenue stream for their content???
post #18 of 20
This sounds to me like the kind of purchase that might have happened around 1999. Youtube worth 1.65 billion? Come on. They won't pull in that much ad revenue in a decade.
post #19 of 20
Quote:
Originally Posted by BEatMaKeR

What a dumb move by Google. YouTube is but a breath away from being sued into existance.

Google probably has more PhDs working there than Harvard.
They aren't stupid and I'm sure they can afford some good lawyers.
Quote:
Originally Posted by BEatMaKeR

What the hell where they thinking?

I think you mean "What the hell were they thinking?"
post #20 of 20
Quote:
Originally Posted by BRussell

This sounds to me like the kind of purchase that might have happened around 1999. Youtube worth 1.65 billion? Come on. They won't pull in that much ad revenue in a decade.

I read somewhere that YouTube has like a community of 12 million. Google just paid $137.50 for every one of those people. I just hope they've got a good plan.
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