Google to buy YouTube for $1.65 billion

Last week’s rumors about Google planning to purchase YouTube were almost spot-on. The search giant has announced that it has agreed to acquire YouTube via a $1.65 billion stock swap. Rather than swallow up YouTube into its Google Video service, though, Google says YouTube will continue to operate independently in order to “preserve its successful brand and passionate community.” YouTube will also keep its 60-employee staff and San Bruno, California offices.

As we reported last week, YouTube held 42.94% of the video search market between February and May this year, while Google had 6.48%. Unless those figures change dramatically, Google may end up with somewhere around half the video search market once the acquisition is finalized later this quarter.

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    • Saeghwin
    • 13 years ago

    It’s times like these I wish I owned like 10 different companies and could play the economy like a game of chess with myself.

    • ripfire
    • 13 years ago

    Told you rumors like these are usually true.

    So now that Google has YouTube, and partnered up with DivX, I wonder what Google is up to?

    • Arkham
    • 13 years ago

    I vote for “GooTube”.

    • totoro
    • 13 years ago

    Don’t feed the trolls.

    • hellokitty
    • 13 years ago

    this is the end of google.

    crap tube is going down soon ( serious lawsuits coming up ) and will take google with it. 90% of crap up there is illegally uploaded copyight material, so Google is paying 1.65 billion to turn itself from a reputable business into a #1 peddler of llegal content.

    Goes to show you, even these supposedly smart geeks, just got lucky once, but they really have shit for brains.

      • willyolio
      • 13 years ago

      yes, i’m sure Universal, Sony, Warner Music, and CBS will all happily sue their new business partner to hell.

      • AKing
      • 13 years ago

      Share more, redefine copyright 😉

        • MadManOriginal
        • 13 years ago

        You mean…

        q[<-[

        • Krogoth
        • 13 years ago

        what basically needs to happen in a nutshell.

        Information age brought an end to the one-sided 1920’s era copyright laws and benefactor of laws doesn’t want things to change so easily.

          • MadManOriginal
          • 13 years ago

          I agree, although 1920s might be stretching it a bit :p, but the bottom line is that for now it’s still stealing no matter what kind of spin someone puts on it.

            • Krogoth
            • 13 years ago

            The crux of the problem is that you are treating IP to have the some value as real, physical property which itself opens up a can of beans. What can stop some scientist from making his/her “revolutionary theory” into IP, becuase they can make big bucks out of it? Some big media companies can make important news scoops into IP and demand huge royalites for redistrubition. I am sure that companies would demand royalites to make any useage of their brand names if they could keep track of it. The list can go on, but I am sure that you have a general idea what kind of slippy slope that IP = real property can lead to.

            The rational solution to the problem is simply to “define” copyright itself. It has to be balance with the rights and restrictions of both copyright holder and users. Uncontrolled priacy nor stringant, archiac laws like DMCA are the answers.

      • Krogoth
      • 13 years ago

      I give it a 2/10 out of trolling scale.

      You do not know what the hell you are talking about.

      If anything Google is going to change yourtube completely and probably make it into prenium verison of Google video.

    • Spotpuff
    • 13 years ago

    I smell lawsuit.

    • Saeghwin
    • 13 years ago

    First off: I’m tired of Google buying things. Second: 1.65 billion? Holy shit, I’d do that in a heartbeat.

    • DreadCthulhu
    • 13 years ago

    I wonder if Google can use their voodoo search skillz to figure out how to filter out stuff posted by people who lack the proper copyright to post those videos – the MPAA & RIAA can’t be all that happy at the amount of copyright violation going on at Youtube.

    • ludi
    • 13 years ago

    Google is buying a huge amount of potential market with this purchase, so that accounts for some of the price, but even so…it makes a person wonder if Google saw another potential YouTube suitor at the diamond shop, got edgy, and then decided to throw out a number so big that YouTube couldn’t possibly refuse.

    • Stranger
    • 13 years ago

    This will put Google in a good position if they want to challenge apple in the for money downloads area if they pursue that.

      • Gandhi
      • 13 years ago

      More likely Google and Apple are working together and YouTube is part of that plan somehow. Their common enemy is Microsoft.

        • Kharnellius
        • 13 years ago

        Woohoo! Way to find a way to bring MS into the picture AND bash MS all at once. You, my friend, have won the thread!

    • Shintai
    • 13 years ago

    1.65billion? 60 people, no tech. Just a good current idea. I think I can smell a new dotcom bubble coming.

      • Stranger
      • 13 years ago

      this is as much about marketshare and name recognition as anything else.

      Edit: although I will agree with you thats a pretty obscence amount of money.

      • UberGerbil
      • 13 years ago

      It’s $1.65B in /[

        • lethal
        • 13 years ago

        the chances of google tanking tomorrow are probabbly close to 1/1.65B too so i think they are in good ground 😉

        • muyuubyou
        • 13 years ago

        I’d be selling a good part of it anyway after a couple of months when things have settled.

      • muyuubyou
      • 13 years ago

      The idea wasn’t even that good. This thing lives basically on copyrighted content… but still they got the deal. Amazing.

      God this looks even worse than 1999.

        • Furen
        • 13 years ago

        If you want to see something bad just look at google’s market cap, lol.

        I wonder what the movie and music industries will do… Suing YouTube wasn’t all that appealing, suing Google, on the other hand… Sounds like a bad deal for google to me.

    • Forge
    • 13 years ago

    $1.65b/60 = many happy happy rich YouTubers. I’d certainly retire.

      • orthogonal
      • 13 years ago

      As nice as that would be, I doubt they all get the same share. The few at the top will get the lions share of the stock.

        • Krogoth
        • 13 years ago

        They still probably have to pay legal fees and stuff for their problems on copyright material, but they still would have a nice pocketball of change. 😉

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