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Oct 9
Google Buys YouTube for $ 1.65 Billion

According to Wall Street Journal Google has agreed to buy  YouTube for $ 1.65 billion. It remains to be seen whether Google is buying traffic or legal problems. (If you don't have a WSJ log-in please use the Tech Crunch link I have given below).

The second issue will be how Google Video will get treated? Will YouTube replace Google's Video search site? How soon and effectively would Google use its AdSense Program on YouTube?

In the short run YouTube will benefit from the enormous brand, cash, and corporate muscle of Google to deal with legal problems. In the long run integration of YouTube into Google's sites would pose a problem. Like Google owned Blogger, YouTube may continue to stand on its own.

Mark Cuban had said 2 weeks ago that buyer of YouTube would be a "moron". We will see whether his prediction will turn out to be accurate.

Tech Crunch has posted the same news with a commentary of the ongoing conf call at Google at the time of this writing. Chad of YouTube confirms what I wrote above -- Google's AdSense would be of great value to YouTube.


3 Comments/Trackbacks




i doubt it. if google takes over it, then it's bound to have more ads than ever, and probaly less better videos to share.

Michael, Google had done a good job with Blogger and they could arguably have a similar "company within a company" model for YouTube. This may work. About more ads and less content -- seems too early to comment but we will keep your observation as a "watch-out for".

Some more facts:
Stock for stock transaction i.e. google shares were given to youtube founders.
YouTube will continue to operate independently and will continue to have the same brand name.
YouTube will continue to be based in San Bruno, CA, and all YouTube employees will remain with the company.
The number of Google shares to be issued in the transaction will be determined based on the 30-day average closing price two trading days prior to the completion of the acquisition.
Both companies have approved the transaction, which is subject to customary closing conditions and is expected to close in the fourth quarter of 2006.
I read www.watblog.com...For further info. check this link out http://www.watblog.com/?content=detail&id=255

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