Google to buy YouTube for $1.65b

Author: Tim Smalley
Published: 10th October 2006
Comments (14) Stumble
Google and YouTube will own nearly half of the online video market once the acquisition is completed this quarter.

Google and YouTube will own nearly half of the online video market once the acquisition is completed this quarter.

Yesterday evening, Google announced that it has agreed to acquire YouTube for US$1.65 billion in a stock-for-stock transaction.

Once the acquisition is complete, YouTube will continue to operate independently in order to "preserve its successful brand and passionate community".

Eric Schmidt, CEO of Google, said that "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."

"Our community has played a vital role in changing the way that people consume media, creating a new clip culture. By joining forces with Google, we can benefit from its global reach and technology leadership to deliver a more comprehensive entertainment experience for our users and to create new opportunities for our partners," said Chad Hurley, CEO and Co-Founder of YouTube.

According to Hit Wise, YouTube owns almost 43% of the online video market, while Google owns a mere 6.5% of the market. Once the aquisition is complete, the two will own almost half of the video market, with its closest competitor being MySpace videos. Yahoo! and MSN's online video schemes make up another 19% of online video searches with 9.6% and 9.2% shares respectively, while the remaining 7% of the market is shared between AOL, iFilm, Grouper Dailymotion and vSocial.

This can only mean good things for online video, in our opinion, as YouTube will be allowed to expand to its full potential. Maybe we'll see the first High-Definition video search service sooner than we think? Share your thoughts in the forums.
Quote dire_wolf 10th October 2006, 08:55
That was a bit out of the blue wasn't it? I thought fox were supposed to be buying them . . .

But yeah, I can certainly see google doing a lot more with the service than anyone else would. Hopefully they don't introduce subs.
Quote Herbicide 10th October 2006, 09:07
If they do introduce subscriptions, it'll probably be for HD videos.

- H.
Quote DougEdey 10th October 2006, 09:08
They'll just get more revenue from the ads, google will probably make profit within 2 years.
Quote Mr T 10th October 2006, 12:07
Does this mean the death of google video or not?
Quote will. 10th October 2006, 12:18
I would imagine so.

and if anyone tries to sue them they have the perfect defence. "if you sue us, no-one will ever visit your site through google search ever again.... how many people visit your site through google by the way? lots? I thought so... Now, are you going to sue us?"
Quote Lazlow 10th October 2006, 12:29
I like Google taking over upstarts and the likes, whereas if Microsoft did it, I (and many others) would be dead-against it.

And I like their mission "to organize the world's information and make it universally accessible and useful."
Quote Buzzons 10th October 2006, 12:36
Well meh, I see no reason why MS should get bashed for taking over "small" companies where as Google who are getting just as powerfull (if not more) do not? (if your in the UK, googlemaps//googleearth is now used on the BBC news to show where stuff is, i mean WTF!)
Quote stephen2002 10th October 2006, 12:41
I would personally love to see the video resolution double, but considering Google's own video service and just about all of the video services out there run at the same 320x240ish resolution I don't expect to see that anytime soon.
Quote will. 10th October 2006, 15:29
Quote:
Originally Posted by Buzzons
Well meh, I see no reason why MS should get bashed for taking over "small" companies where as Google who are getting just as powerfull (if not more) do not? (if your in the UK, googlemaps//googleearth is now used on the BBC news to show where stuff is, i mean WTF!)

its because microsoft go arround doing nasty things to little people.

for example, my favorite, when microsoft sued Mike Rowe who happened to be a software developer and had a website called mikerowesoft or something like that....

google is just a far more human company and people like them for that.
Quote dire_wolf 10th October 2006, 15:32
Didn't he get a free xbox and MCSE training out of it all though ?
Quote Lazlow 10th October 2006, 15:34
Quote:
Originally Posted by will.
google is just a far more human company and people like them for that.
Exactly. Take Microsoft swallowing up the small game developers for example.

On a side note, I couldn't find anything on You Tube's site that stated it was being purchased by Google. In their blog it also mentions that they're funded by what seems to be big multi-nationals.
Quote dire_wolf 10th October 2006, 15:43
Quote:
Originally Posted by Lazlow
On a side note, I couldn't find anything on You Tube's site that stated it was being purchased by Google.

Clicky

It's been at the very top of the front page all day, I would assume if it's a fake it would have been torn down by now

No wonder they have such huge unnatural grins lol
Quote DougEdey 10th October 2006, 16:15
i love the way a lot of the comments seem to slam google.
Quote Warrior_Rocker 10th October 2006, 17:58
This is exciting. If nothing else google may be able to give the site an overhaul and get it better organized. Google seems to be good at that kind of thing after all.... first and foremost they are a search engine.

This sounds like something that both youtube and google have agreed upon together. Not like some other companies just decideding they want to buy another and anexing it. Though its easy to bash microsoft for everything bad that happens. Simply put they cannot be held responsible as a bad guy for capitalizing on opportunities.
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