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Google Buys YouTube for $1.65B

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Google Buys YouTube for $1.65B

Old 10-09-06, 04:49 PM
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Google Buys YouTube for $1.65B

From CNN Money

NEW YORK (CNNMoney.com) -- Google, the Internet's leading search engine, announced Monday that it is buying popular online video site YouTube for $1.65 billion in stock.

YouTube, which was founded in February 2005, has quickly become the most well-known of several online video sites. More than 100 million videos, many of which are short videos created by the site's users, are downloaded a day on the site.

According to Internet research firm Hitwise, YouTube has about a 46 percent share of the online video market.

For Google (Charts), the purchase of YouTube gives the company the ability to tap into the potentially lucrative online video and social networking markets. Some analysts have criticized Google for relying too much on advertising tied to keyword searches.

The combination of Google and YouTube could further strengthen Google's dominance in online advertising, giving it an edge over rivals such as Yahoo! (Charts), Microsoft's (Charts) MSN and News Corp (Charts)., which owns the social networking site MySpace. Some analysts said Monday that Yahoo, Microsoft and News Corp. also had probably expressed interest in buying YouTube.

In a statement, Google said that YouTube will operate as an independent unit of Google once the deal closes and will retain the YouTube brand name. The companies added that no YouTube workers will lose their jobs as a result of the acquisition and that Google will maintain its own online video business.

Clayton Moran, an analyst with Stanford Group, said after the deal was announced that Google was paying a rich price for YouTube. But he said Google needed to do something to become more competitive with MySpace, which currently ranks in second place in online video market share.

"My sense is that Google is paying a full price considering that YouTube is still unproven in regards to its revenue potential. But considering the success of MySpace it was clearly worthwhile for Google to take this step," Moran said.

Reports of a deal first began to circulate on Friday. Shares of Google rose about 2 percent on the Nasdaq Monday after posting a similar gain on Friday. The stock dipped slightly in after hours trading.
Old 10-09-06, 04:53 PM
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That's amazing money for something so simple and so new, but it is probably worth it to them.
Old 10-09-06, 04:53 PM
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I agree with what Cuban said. It is absolutely stupid to purchase this company. There is so much copyrighted stuff on there, Google is in for a nasty legal battle. Hopefully they can work out licensing agreements before that happens.
Old 10-09-06, 05:06 PM
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GoogleTube?
YouToogle?
Old 10-09-06, 05:11 PM
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How about GooTube?
Old 10-09-06, 05:15 PM
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majorjoe23

How about GooTube?
Dey took 'er videos!

das
Old 10-09-06, 05:15 PM
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Originally Posted by majorjoe23
How about GooTube?
I said GoogTube earlier this morning.
Old 10-09-06, 05:35 PM
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Originally Posted by DVD Josh
I said GoogTube earlier this morning.
But that doesn't sound as dirty.
Old 10-09-06, 05:39 PM
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I wonder if pornotube is next up on their buyout list?
Old 10-09-06, 05:46 PM
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$1.6 billion in 18 months.

Big move by Google...their video sucked, so this was a smart move. Internet video es la futura.
Old 10-09-06, 05:47 PM
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Simply ... wow.
Old 10-09-06, 05:54 PM
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Originally Posted by DVD Josh
I agree with what Cuban said. It is absolutely stupid to purchase this company. There is so much copyrighted stuff on there, Google is in for a nasty legal battle. Hopefully they can work out licensing agreements before that happens.
I love Mark Cuban, but hey, didn't he fool somebody into buying broadcast.com for like a zillion dollars? And where is broadcast.com now?

Oh yeah, here ya go:

http://en.wikipedia.org/wiki/Broadcast.com

Wonder how much revenue Yahoo makes from the assets they acquired from Broadcast.com for 5.7 billion dollars.
Old 10-09-06, 06:06 PM
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Originally Posted by DVD Josh
I agree with what Cuban said. It is absolutely stupid to purchase this company. There is so much copyrighted stuff on there, Google is in for a nasty legal battle. Hopefully they can work out licensing agreements before that happens.
YouTube announced today several new copyright deals, now they have agreements with Universal, Warner, CBS, NBC, and a few others I believe.

I think it's certainly a viable product, especially considering the enormous user base.
Old 10-09-06, 06:15 PM
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Originally Posted by Lord Rick
I love Mark Cuban, but hey, didn't he fool somebody into buying broadcast.com for like a zillion dollars? And where is broadcast.com now?

Oh yeah, here ya go:

http://en.wikipedia.org/wiki/Broadcast.com

Wonder how much revenue Yahoo makes from the assets they acquired from Broadcast.com for 5.7 billion dollars.
Wasn't it more for the infrastructure and technology than actual content?
Old 10-09-06, 06:34 PM
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Wish I could come up with some snazzy new internet thing some doofus company wants to buy for millions.
Old 10-09-06, 06:37 PM
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Originally Posted by devilshalo
Wish I could come up with some snazzy new internet thing some doofus company wants to buy for millions.
in this case, it's billions, but i'd settle for millions
Old 10-09-06, 06:40 PM
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It's also a net community issue...Google is dying to get into this field, so this helps their 'cause' a little bit more. Youtube has the brand name and was fortunate to be innovative at the right time.

You have to admit that online video is a valuable feature for many websites/ecommerce sites, so I an understand the demand. That being said, $1 billion is obviously a gamble
Old 10-09-06, 07:04 PM
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Damn, I should have remained closer friends with Steve Chen after high school.
Old 10-09-06, 07:06 PM
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Originally Posted by Birrman54
YouTube announced today several new copyright deals, now they have agreements with Universal, Warner, CBS, NBC, and a few others I believe.

I think it's certainly a viable product, especially considering the enormous user base.
Hopefully that means everything stays the way it is.
Old 10-09-06, 07:12 PM
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Originally Posted by Ranger
Hopefully that means everything stays the way it is.
I'm hoping things will stay similar, but more viable in the long term. We've got to accept that some form of advertising will be attached to copyrighted material, it'll be good for the industry if someone can establish a viable free online delivery of copyrighted material.
Old 10-09-06, 07:49 PM
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Originally Posted by Deftones
Wasn't it more for the infrastructure and technology than actual content?

the infrastructure and tech will be obsolete in 2-3 years

only reason i can think of is that a lot of companies release their ads on youtube and google wants in on this to complement their search business

that or they just bought them as a way to keep them out of microsoft's hands or someone else's

i really can't thing of a reason to pay all this money for a company that is probably losing money like the dot com it is
Old 10-09-06, 07:51 PM
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Originally Posted by al_bundy
the infrastructure and tech will be obsolete in 2-3 years

only reason i can think of is that a lot of companies release their ads on youtube and google wants in on this to complement their search business

that or they just bought them as a way to keep them out of microsoft's hands or someone else's

i really can't thing of a reason to pay all this money for a company that is probably losing money like the dot com it is
But back when they bought it, it wasn't.
Old 10-09-06, 08:09 PM
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i predict in 5 years people will be 100% sure that the former CEO of Novell is a moran and that this will just be more proof

except for search google isn't #1 in any other product it offers. instead of getting some of it's products out of perpetual beta and making them #1, Google goes out and buys a company whose future is murky at best

Last edited by al_bundy; 10-09-06 at 08:13 PM.
Old 10-09-06, 08:15 PM
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Goo-Goo-Ga-Tube

Old 10-09-06, 08:15 PM
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I guess companies can't be smart all the time.

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