Google to Buy You Tube for $1.65 Billion - Sportbike Forum: Sportbike Motorcycle Forums
 
LinkBack Thread Tools Display Modes
post #1 of 2 (permalink) Old 10-10-2006, 05:39 AM Thread Starter
Moderator
 
DocThee's Avatar
 
Join Date: Oct 2002
Location: Madison Heights, MI 48071
Posts: 4,824
Send a message via AIM to DocThee Send a message via Yahoo to DocThee
Google to Buy You Tube for $1.65 Billion

Where did we go wrong...

Quote:
Google to buy YouTube for $1.65bn
By Kevin Allison in San Francisco and Aline van Duyn in New York
Financial Times


Updated: 2:11 a.m. ET Oct 10, 2006
Google, the internet search giant, has agreed to acquire YouTube, the California-based video start-up, for $1.65bn in an all-stock transaction that will turn the company's 20-something co-founders into instant multi-millionaires.

The deal makes YouTube which has yet to turn a profit but which has grown into one of the most popular internet destinations with 100m daily video viewings the first site dedicated to user-generated content to be sold for more than $1bn, setting a new price level for the sector.

"The YouTube team has built an exciting and powerful media platform that complements Google's mission to organise the world's information and make it universally accessible and useful," said Eric Schmidt, Google chief executive. "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."

Google said the start-up would retain separate offices and all its 67 employees.

In spite of YouTube's popularity there have been questions about the sustainability of the company in light of the large amount of illegally copied material viewed on the site and limited advertising revenues to date.

However, YouTube has struck deals with big US media companies to legitimately distribute their video content three were announced on Monday reducing the threat of copyright lawsuits.

Chad Hurley, YouTube chief executive, said the acquisition would allow the company to "sharpen our focus" in working with content providers to overcome the copyright issue.

In addition, Google's technical expertise and clout with advertisers could turn YouTube into a highly profitable venture, especially as advertisers increasingly look to target the young audience which is spending less time watching television and more time watching videos on sites such as YouTube.

"Large advertisers are looking to spend more money with Google," said Ben Schachter, analyst at UBS. "Video is a major focus, and YouTube increases [Google's] inventory."

The deal is one of Google's biggest acquisitions in its eight-year history. It marks a tacit admission by Google that the search group's own video site has failed to gain the same traction among its audience as YouTube.

"When we looked at the marketplace, there was a clear winner in [the] networking and social networking side of video," said Mr Schmidt.

The deal follows the acquisition last year by Rupert Murdoch's News Corp of MySpace.com, the social networking site, for $580m in cash, at the time considered a hefty price for a media start-up but now widely regarded as having been a good investment in order to tap the online youth audience.

Facebook, another social networking site which has also grown hugely in terms of its online audience, has also had talks with media and internet companies about a possible acquisition.

YouTube signed deals on Monday to offer music videos from Vivendi'sUniversal Music Group and Sony BMG Music Entertainment, as well as television content from CBS, sharing any related advertising revenue.

YouTube has had acquisition talks with a number of media companies. A deal would make Mr Hurley and Steve Chen, its other co-founder, multi-millionaires.

Copyright The Financial Times Ltd. All rights reserved.



SOURCE


To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.


Keep the ride on...

AIM and Yahoo! - DocThee

"Anything can be a medicine or a poison."

Virtus Junxit Mors Non Seperabit
DocThee is offline  
Sponsored Links
Advertisement
 
post #2 of 2 (permalink) Old 10-10-2006, 10:35 AM
 
Join Date: Jul 2002
Posts: 2,622
I guess they did not take my low ball offer then
shucks
almightys is offline  
Sponsored Links
Advertisement
 
Reply

Quick Reply
Message:
Options

Register Now



In order to be able to post messages on the Sportbike Forum: Sportbike Motorcycle Forums forums, you must first register.
Please enter your desired user name, your email address and other required details in the form below.

User Name:
Password
Please enter a password for your user account. Note that passwords are case-sensitive.

Password:


Confirm Password:
Email Address
Please enter a valid email address for yourself.

Email Address:
OR

Log-in










Thread Tools
Show Printable Version Show Printable Version
Email this Page Email this Page
Display Modes
Linear Mode Linear Mode



Posting Rules  
You may post new threads
You may post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On

 
For the best viewing experience please update your browser to Google Chrome