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Old 10-10-2006, 01:39 AM   #1

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It's Official: Google Buys YouTube

Quote:
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.

Source: http://news.bbc.co.uk/1/hi/business/6034577.stm
Amazing. Anything Google wants, Google buys. I can't believe they can just afford to buy these things even if they lose money on it.
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Old 10-10-2006, 01:53 AM   #2

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Wow, Google...one step closer to the internet superpower, if they aren't already
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Old 10-10-2006, 02:41 AM   #3

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I've always said that it would take someone very good at monetization to make buying YouTube worth it, and if there's one thing Google's a pro at, it's that. I mean, if nothing else, they'll be taking pure profit (ie, no commission) on the adsense ads they display...

But if nothing else, YouTube is a phenomenal way of just reaching an audience. It's so wildly popular, that just owning it as a vehicle for buzz-prompting is practically worth that amount on its own.

We'll definitely see something happen with it soon though, I'm sure.
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Old 10-10-2006, 02:45 AM   #4

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Quote:
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We'll definitely see something happen with it soon though, I'm sure.
With how revolutionary Google has been in the past with their various services (google videos, google earth, gmail), I too am expecting some great things for YouTube. Google is very good at what they do.
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Old 10-10-2006, 02:54 AM   #5

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$1.65 billion is a staggering amount.
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Old 10-10-2006, 04:21 AM   #6

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It really, really is. I would have guessed about half that, and still would have considered that a ridiculous amount for something that many were saying was unbuyable, or at least unable to be monetized effectively. My goal in life, for a long time, was to come up with some idea big / good enough to be bought out by Google, cause clearly that's the way to internet fame and riches. Screw all this hard work stuff.
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Old 10-10-2006, 05:36 AM   #7

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Theres rumors that google will put ads at the beginning of all youtube videos...

Heres some of the things Mark Cuban (Dallas Maverick owner, who made billions off the web) said about YouTube.

Quote:
That YouTube would eventually be "sued into oblivion" because of copyright violations.

"The only reason it hasn't been sued yet is because there is nobody with big money to sue."

"anyone who buys that (YouTube) is a moron"
I do have to agree with him tho. Its going to be sued now that Google (someone with big money) owns it.
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Old 10-10-2006, 06:40 AM   #8

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Mark Cuban is annoying. He went from ranting about basketball refs to ranting about everything else in the world.
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Old 10-10-2006, 07:56 AM   #9

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My thought: More Money than sense


Quote:
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Wow, Google...one step closer to the internet superpower, if they aren't already
They are ther internet super power, my mum thought the internet was broken because Google was down once.
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Old 10-10-2006, 04:35 PM   #10

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Ads at the beginning of videos is actually a fairly obvious one, as iFilm and their ilk have been doing that for years. Makes you wonder why nobody at YouTube thought of it first, as it only would have chipped the price up.

Still, I doubt they're crying about a 1.65 BAJILLION dollar payoff.
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