Black Knight of Keno Posted October 10, 2006 Posted October 10, 2006 http://money.cnn.com/2006/10/09/technology/googleyoutube_deal/index.htm 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, 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!, Microsoft's MSN and News Corp., 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. There's the best article I could find on the subject. Heard it on the news just now. The hell is Google messing with Youtube? It makes no sense to me. I feel dizzy. Dang... I never thought that Youtube would be worth as much as it seems to be.
toms Posted October 10, 2006 Posted October 10, 2006 I don't get it. Google already had google video. the only advantage youtube had was that it was filled with copyrighted material and getting sued.. wheras google banned the copyrighted material. Google should have bought flickr, and a couple of other sites i can think of, and maybe skype, before spending billions on youtube.
milo Posted October 10, 2006 Posted October 10, 2006 Holy ****. That's purty little profit those two made.
generalvaklu321 Posted October 10, 2006 Posted October 10, 2006 Well, Youtube kicks the crap out of Google Video. So, Google decided to absorb Youtube. Simple business move
toms Posted October 10, 2006 Posted October 10, 2006 but $1.6 billion? for a site that is losing millions every day and has never made any profit? They could have bought flickr, skype, del.icio.us and probably digg for that ammount of money.. and then made their version of google video into something closer to toutube/flickr. They really need something like digg to combine with their news system and improve it a bit. I still think its an odd move... its more than and entire year's net income for google. Still, they must have some idea what they are gonna do with it.
Mike Windu Posted October 10, 2006 Posted October 10, 2006 I disagree, youtube's popularity alone probably made the purchase worth it. I know when I can't find stuff on google video (or get sick of the stuff I have to pay for to see) I head over to youtube. Now google dominates the streaming video market.
IG-64 Posted October 11, 2006 Posted October 11, 2006 I agree that Google Video sucked, but Google is usually pretty good with cool free services (Gmail, Google Earth), so I'm not that worried. YouTube will probably just stay the same, it'll just be owned by Google. Hopefully. >_>
narfblat Posted October 11, 2006 Posted October 11, 2006 I agree that Google Video sucked, but Google is usually pretty good with cool free services (Gmail, Google Earth), so I'm not that worried. YouTube will probably just stay the same, it'll just be owned by Google. I hope you're right. I don't want it to become GooTube.
TiE23 Posted October 11, 2006 Posted October 11, 2006 You know how many people use YouTube? You can go to school and ask anyone and 90% of the time they will say they've been there. Google won't be dumb and change it for the worst. Probably just put Google ads and make crap loads of cash... probably.
Datheus Posted October 11, 2006 Posted October 11, 2006 Here's the deal: Not a lot of people in the business are surprised by this. There's been a lot of discussion about this happening for the last month or so. YouTube has no real business model and its bandwidth bills are probably over 2 million dollars a MONTH. They have been just hemmoraging cash. However, Google has the kind of pockets to support it. YouTube is also far more suscessful than Google video. Look around, the ratio videos embedded on blogs and other sites is probably 6:1 Youtube:Google. It may be even larger than that. No one really knows what Google plans to do make YouTube susccessful, but that's really what Google does. Advertisement. I'm sure they've got something in mind.
Tyrion Posted October 11, 2006 Posted October 11, 2006 I think this could work out well for google: use its google ads to capitalize on the plethora of different videos out there. Youtube has both popularity and easy classification, so it would not be hard for google to make quite a bit of profit from it.
Sabretooth Posted October 11, 2006 Posted October 11, 2006 Read about this in the papers. Its sad, really. I liked Youtube as an independent enterprise rather than part of Microsoft, Google, Yahoo! or some other **** like that. And it looks as if Google made the move because Google Videos sucked. Whatever the case, I guess it must be a good move in the end...] The YT website doesn't look changed yet. And it still has "YouTube Inc." at the bottom.
toms Posted October 11, 2006 Posted October 11, 2006 Well, youtube's only business strategy was "hope yahoo or google buys us before we lose SO MUCH money that the venture capitalists pull out".. so i guess it works for them. Google must really think that video is gonna dominate the web though, cos even any profits they make from advertising on youtube are gonna be dwarfed by the cost for years to come.
swphreak Posted October 11, 2006 Posted October 11, 2006 The only thing I see is that google just paid a billion dollars for youtube's potential lawsuits. They'll probably merge youtube and google video somehow. Perhaps be able to search both?
Jeff Posted October 12, 2006 Posted October 12, 2006 I know they said they're letting YouTube continue to be run independently, so that's good at least.
TiE23 Posted October 12, 2006 Posted October 12, 2006 Dude, I'd sell anything when a van full of Benjamins rolled up my driveway. First born? **** yea, want him wrapped?
Crow_Nest Posted October 12, 2006 Posted October 12, 2006 Well, Youtube kicks the crap out of Google Video. So, Google decided to absorb Youtube. Simple business move Thats what i thought too. YouTube > Google Video anytime anywhere. Google better not do anything funny...
Mike Windu Posted October 12, 2006 Posted October 12, 2006 First born? **** yea, want him wrapped? Who says you're gonna get a girl? Ninja vanish.
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