Google Snaps Up YouTube for $1.65B

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Jayhawkk

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SAN FRANCISCO - Google Inc. snapped up YouTube Inc. for $1.65 billion Monday in deal that catapults the Internet search leader to a leading role in the online video revolution.

The all-stock acquisition unites one of the Internet's marquee companies with one of its rapidly rising stars.

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

Although some cynics have questioned YouTube's staying power, Google is betting that the popular Web site will provide it an increasingly lucrative marketing hub as more viewers and advertisers migrate from television to the Internet.

"We are natural partners to offer a compelling media entertainment service to users, content owners and advertisers," said Eric Schmidt, Google's chief executive officer.

YouTube will continue to retain its brand, as well as all 67 employees, including co-founders Chad Hurley and Steve Chen.

Copyright 2006 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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Not really. They have alreayd dealt with copyright issues with their search engine. Its old news to them.

Plus they have 10 billion sitting in accounts laughin at the lawsuits.
 
These guys must feel wonderful. They started YouTube in a garage and built it on credit card debt.
 
I bet YouTube starts offering tv show downloads similar to those for iPods. It's bound to happen sooner or later.
 
nah first you'll see udated movies meaning better resolution running on better software, etc. then they will move to a monthly payment of some sort down the road. its then they will add like u said ipod purchases, and prob. movies etc etc. Its a long time investment for google, but when its all said and done, theyll have tons of sponsors and prob have edless amounts of ppv movies that cable/satelitte just can compete with. lol good idea, ppv movies on the net via stream(good quality) and have a better selectgion than the just relesased movies on cable, plus itll be a monopoly since theyll prob be the only ones doin it for a while, and itll be legal since you have to pay for it in which just like cable there royalties go to the manufactors of the entertainment. this of course wil be way off and later down the road, but ive seen it happen. google not stupid and they are not gonna purchase something that they dont see a huge profit off of later down the road.
 
brk_nemesis said:
nah first you'll see udated movies meaning better resolution running on better software, etc. then they will move to a monthly payment of some sort down the road. its then they will add like u said ipod purchases, and prob. movies etc etc. Its a long time investment for google, but when its all said and done, theyll have tons of sponsors and prob have edless amounts of ppv movies that cable/satelitte just can compete with. lol good idea, ppv movies on the net via stream(good quality) and have a better selectgion than the just relesased movies on cable, plus itll be a monopoly since theyll prob be the only ones doin it for a while, and itll be legal since you have to pay for it in which just like cable there royalties go to the manufactors of the entertainment. this of course wil be way off and later down the road, but ive seen it happen. google not stupid and they are not gonna purchase something that they dont see a huge profit off of later down the road.
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I have already seen websites that offer movies to be downloaded at a minimal charge...oh wait, those were....well, nevermind:ntome:...and I definitely meant that there would be a charge for downloads, but I never thought about a subscription fee. It should be interesting to keep up with this and see where it goes.

I wonder if they'll try to angle it like GMail and try to come up with a way to offer stuff for free and still be able to make money off of it (via sponsors of course). Just another idea, but not sure how that would work.
 
stxnas said:
I have already seen websites that offer movies to be downloaded at a minimal charge...oh wait, those were....well, nevermind:ntome:...and I definitely meant that there would be a charge for downloads, but I never thought about a subscription fee. It should be interesting to keep up with this and see where it goes.

I wonder if they'll try to angle it like GMail and try to come up with a way to offer stuff for free and still be able to make money off of it (via sponsors of course). Just another idea, but not sure how that would work.
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believe it or not i wouldnt be suprised if more and more websites and search engines begin charging ppl for using them lol. prob wount happen anytime soon but hell if google bought up2-3 more search engines charged a measly $3 bucks a month to use them, $3x millions of people well u get the picture , a lota money. dam i need to call google on this, maybe get me a royalty check for my idea.:study:
 
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