Google Buys YouTube for $1.65 BILLION

30 comments

Just got this IM from an analyst at RBC Capital:

Quote:
[16:14] Analyst: ITS OFFICIAL
[16:14] Analyst: GOOG BUYS YOUTUBE FOR $1.65 BILLION
[16:16] skore3757: it happened?
[16:16] Analyst: yes
[16:16] Analyst: just announced

Comments

For Stock (Funny Money)

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

I'm with Mr. Cuban

Mark Cuban thinks Google is crazy:
http://www.blogmaverick.com/2006/10/09/i-still-think-google-is-crazy/

Quote:
It will be interesting to see what happens next and what happens in the copyright world...if Google gets nailed one single time for copyright violation, there are going to be more shareholder lawsuits than doans has pills to go with the pile on copyright suits that follow...

The copyright issues are going to be very very interesting...

Guess they want to be a media company after all

So even if Google.com is not going to be a portal, they are looking to have their own stable of media outlets. It will give them a whole new tier of "super trusted" Googley sites.

That's Not the way to do it

If you want to be a media company then don't buy yourself a copyright infringement nightmare.

Buy content that you own and create yourself, not something that you can get sued over.

I'm guessing they have a strategy on that

The people at Google may be wrong, but they aren't stupid. You have to figure the lawyers have been all over this.

Easy come, easy go. That's

Easy come, easy go. That's got to be a big part of this.

I really have a

feeling they'll figure out a way to resolve the legal issues at hand. This smells more of Ebay acquiring Paypal for that marketshare & userbase than anything else.

Or maybe that brownie I got at Starbucks today was spiked. :)

This is more than userbase

This is a change in the focus of the company. They already reach everyone on the internet in their search capacity. This signals that they really want to own the content - or at least the user experience - at the destination of the search.

there were other deals today

there were other deals today that may end up reducing the copyright risk, and may set a precedent for future deals.

Google partners with Warner Music and Sony BMG
YouTube partners with Universal Music, CBS, and Sony BMG

Volatility

This is some crazy assed DOT COM BUBBLE pricing all over again.

Google stockholders should brace for impact if they can't monetize the damn thing (AdSense? riiiiiight) or get out from under the copyright infringement lawsuits stacking up.

Gonna be

some major ad serving to recoup that investment. I guess one of those cant opt out of sides to the ad network should bring it back in...

Time to post a link bait

Time to post a link bait video with an ad inserted every other frame. Call it GooTube.

Brilliant move.

Brilliant move. Barring a Microsoft buyout of Yahoo, this will be the most important Internet Acquisition of the Decade.

Brilliant move. Barring a

Brilliant move. Barring a Microsoft buyout of Yahoo, this will be the most important Internet Acquisition of the Decade.

Agree this is probably one of the most important deals we've seen the past few years. The future of the internet is IPTV, and Google just bought themselves a huge marketshare of that future.

As for copyright issues - I think Google is clever enough to be able to work this one out via negotiation with distribution deals.

Well I suppose...

Well I suppose that YouTube got quite a few (tens of) million(s of) extra eyeballs on it today, and their content acquired a few million extra incoming links too.

Must be the most expensive piece of link-bait in history. Evah!

GOD. 1 and a half billion

GOD. 1 and a half billion dollars in stock. I want an icecream.

Facebook next

or Bebo.

Why not?

This is massive news

Everyone in the office is talking about it. I actually think it's potentially, a pretty good buy. The internet is replacing regular TV for video, even for the regular joe.

Even now, I enjoy spending time on youtube over a cold beer more than the traditional channel surfing. Sure, my fav youtube TV show is a licensed "Kenny Vs Spenny" but even after a crackdown on copyrighted video, I'd be happy to pay per view or watch a short advertisment.

Future of video in my opinion. Massive news.

Agree on the good move as well

And combining the two, they have a deal with every major record label and half the networks. This is what cuban didn't get. Most people could give a crap if the content comes at 1080p or 320x200, they just want ease of access and the ability to "own" it by sharing it with friends. Cuban is a dinosaur.

The risk is confined to

The risk is confined to Youtube. Even if lawsuits bankrupt the (Youtube) company Google benefits from the traffic it drives in the interim, and until the final court order comes to close down the company. That might be years if it ever happens at all.

Dumb Move

Sorry Guys.. this is a mistake on epic proportions.

Google Video is set to overtake Youtube anyway in the long run... all this does is deny MSN or Yahoo to purchase something..

So the logic is to spend money on something you could of used for R&D, just to duplicate the technology you already have, Google Video in my opinion is on par with Youtube in technology..

That 1.65 billion should of been allocated to a Google OS ..

The best part

The best part of Youtube is the copyrighted videos--the ones that are homemade and that's why I frequent the site. The problem is that if I post my video there and GOOG profits from it then I want some of that income.

The next best part of Youtube is the copyrighted video clips that come from the news (i.e., Bill Clinton's recent interview on network TV).

If GOOG does anything to control the copyright (which they'll have to keep from getting sued) then they're going to have to ruin the best part of Youtube. Look at what happened to Napster.

The face and content of Youtube is going to change to be more like itunes--all Sony/Warner/NBC professionally made videos--no more copyrighted videos.

Of course, GOOG had to buy Youtube to keep it out of the hands of others (like Y!, MSN, etc.). It was a great move.

Maybe the best part is that this deal paves the way for Contextual Video. ;)

Google Video VS YouTube

Founder, I don't believe google video was ever going to overtake youtube. It's about the brand power. Google bought a brand name that they desperately needed. I feel lack of unique brand is one of the main reasons their other multiple products haven't taken off as expected.

People do Google for search, not watching video.

Yes, blocking of purchase from Y! and MS is handy too. Unfortunately for microsoft, they're yet to even find an appropriate brand name for their search product. Not sure live.com will cut it yet.

Brilliant Move - Terrible Consequences

Buying YouTube is a Brilliant move to block out Yahoo, NewsCorp, Ask and MSN. The acquisition of MySpace by Newscorp followed by the $900 million MySpace–Google search deal inflated the price for Social Media sites. Google may have overpaid or they may not have, but they now own the traffic that could have gone to a competitor.

The copywrite issues are not inconsequential, but the comparison between Napster and YouTube miss the mark because 1. This is streaming content, not downloading and 2. Google has a lot more muscle when dealing with major content owners.

The terrible consequences are the impact of the search advertising revenue model and artificial valuations that distort the focus of Social Media sites and turns them into giant affiliate sites for search advertising. CPC advertising revenue is a great model—for a search engine. When a community site depends on driving search queries for revenue, it takes the emphasis away from unique aspects that attracted the user in the first place. More about Social Media and Search Advertising

Good call, ROIGUY. If

Good call, ROIGUY. If nothing else, these purchases underline the incredible rip off that is Google AdSense. Your visitors are worth fractions of pennies, yet when they are valued on the open market they are worth billions. You don't just have to "do the math" but look at the value of the visitors. I agree that publishers are giving away their properties.

Two Kings

Pretty funny clip

Funny clip. "Dude, get your

Funny clip. "Dude, get your hands off me" And of course, filmed in front of a T.G.I. Fridays. Must be celebration day... going for the good stuff.

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