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Google Buys YouTube
For $1.65 billion, Mark Cuban be damned...
by Karl Bode Monday 09-Oct-2006
Google late today acknowledged rumors that they will be buying on-line video portal Youtube for $1.65 billion in stock. The deal makes YouTube the most expensive purchase Google has made in its history. According to Google, YouTube will retain it's own branding post-acquisition, will remain in San Bruno, California, and all current employees will be retained.

"The YouTube team has built an exciting and powerful media platform that complements Google's mission to organize the world's information and make it universally accessible and useful," said Google CEO Eric Schmidt in a prepared statement. "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."

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markopoleo

join:2003-04-02
Bonne Terre, MO

Terrible purchase.

Goodbuy Youtube, hello YouBuy.

Toadman
Hypnotoad

join:2001-11-28
Ohio
kudos:1

Re: Terrible purchase.

Terrible Purchase, why buy something that is loosing money and that you can do yourself. There is absolutely no intellectual property or market gain that Google will gain, atleast not worth that money.

Bad buy!

Jafo232
You Can't Spell Democrat Without Rat.
Premium
join:2002-10-17
Boonville, NY

Re: Terrible purchase.

said by Toadman:

Terrible Purchase, why buy something that is loosing money and that you can do yourself. There is absolutely no intellectual property or market gain that Google will gain, atleast not worth that money.

Bad buy!
I wonder who knows more about Internet traffic, Google or Toadman?
--
'Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached'

rachelsfx

join:2004-09-27
Pensacola, FL
Gee, did you read the announcement? YouTube retains its brand and its employees remain in their jobs.

There goes the fun on YouTube.

jester121
Premium
join:2003-08-09
Lake Zurich, IL
Reviews:
·voip.ms
said by markopoleo:

Goodbuy Youtube, hello YouBuy.
Yeah, since Google has such a storied history of charging end users for their products and services...

badjoe
Americal Division
Premium
join:2003-12-04
Google Sets Aside Copyright Concerns In YouTube Acquisition
http://www.informationweek.com/showArticle.jhtml;jsessionid=2JSRYPD1S3RSEQSNDLRSKHSCJUNN2JVN?articleID=193105728

Greg_Z
Premium
join:2001-08-08
Springfield, IL

As known as "You will not last long".

The last to be known as YouTube. YouTube was damned from the beginning.
--
I threw out the map a long time ago. Now I follow my own direction!
amungus
Premium
join:2004-11-26
America
Reviews:
·AT&T DSL Service

and now...

and now they can censor everything they want... or reset counters for video's which present alternative views of things... hmm... very interesting.

oh well. maybe now they can work together to improve the quality.

good for google. hope they can also work out presenting tv shows for free somehow. I miss ess.tv.

Elite

join:2002-10-03
Orange, CT

Competition

There goes Google's biggest competitor...
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AMD, because it's just better.

Matt
All noise, no signal.
Premium
join:2003-07-20
Jamestown, NC
kudos:12

Re: Competition

said by Elite:

There goes Google's biggest competitor...
Exactly. It was YouTube and Google Video. Now there is no conflict.

Google bought out their competition.

Where are the zealots who wail about Microsoft buying up their competitors?

crazediamond
Hate and treason? That's your heritage.
Premium
join:2002-01-19
Charlottesville, VA

Re: Competition

they'll show up, give 'em time

SequimPC
Got Fiber?
Premium
join:2004-02-11
Sequim, WA
Divx has a cool site that kicks the crap out of google and youtube. I think it is www.stage6.divx.com High quality video and it's also free.

SRFireside

join:2001-01-19
Houston, TX
But YouTube is continuing on unaffected and Google Video will also be unchanged. Normally when you "buy out" the competition that means you close their doors so your product can reign in unhindered. So far that's not happening.

phattieg

join:2001-04-29
Winter Park, FL
Reviews:
·Bright House
said by Matt:

said by Elite:

There goes Google's biggest competitor...
Exactly. It was YouTube and Google Video. Now there is no conflict.

Google bought out their competition.

Where are the zealots who wail about Microsoft buying up their competitors?
Haha, yeah, next you'll see "http://youtube.google.com"
--
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chemaupr

join:2005-06-06
Alexandria, VA

1 edit

will see..

google better has a good strategy, because this is way to much money for a "social website" that does not generate profit and will not in a long, long time...

plus, now all the companies seeking suing for copyright have a bigger target!
taar

join:2000-11-21

Nice move Google

Hopefully the studios and record companies will work something out with mighty google instead of threatening to sue little YouTube into oblivion. If they are still headstrong, i guess Google can buy them out and fire the top brass....

Romney2012
Defeat Obama 2012-Chg we can believe in
Premium
join:2002-03-03
USA
kudos:4

Re: Nice move Google

said by taar:

Hopefully the studios and record companies will work something out with mighty google instead of threatening to sue little YouTube into oblivion. If they are still headstrong, i guess Google can buy them out and fire the top brass....
YouTube already announced deals today with CBS, Universal, Warner Music, Sony BMG before the Google announcement. I am sure those deals were based on Google taking over YouTube and all the shared ad revenue expected.
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Matt
All noise, no signal.
Premium
join:2003-07-20
Jamestown, NC
kudos:12

Re: Nice move Google

said by Romney2012:

said by taar:

Hopefully the studios and record companies will work something out with mighty google instead of threatening to sue little YouTube into oblivion. If they are still headstrong, i guess Google can buy them out and fire the top brass....
YouTube already announced deals today with CBS, Universal, Warner Music, Sony BMG before the Google announcement. I am sure those deals were based on Google taking over YouTube and all the shared ad revenue expected.
You're sure ... or you think? Big difference.
Jonbo298

join:2004-01-12
Council Bluffs, IA
Yeah, google will enjoy the fighting over copyright. At least YouTube's "founders" doesnt have to deal with the legal fees
mswann

join:2006-07-08
Rancho Cucamonga, CA

Re: Nice move Google

There probably won't be any copyright fights due to the deals that were inked prior to the announcement. Do you think that google would have forked out that much for a lawsuit waiting to happen? Google also has something like 9 billion in cash, they have to show investors that there stock is worth the $400+ that its at now.

nfixit2004
Premium
join:2004-01-06
Brooklyn, NY

Re: Nice move Google

I agree, google didnt put all that $ up for nothing!

morbo
Complete Your Transaction

join:2002-01-22
00000

nice title, Karl

Mark Cuban be damned...
tmc8080

join:2004-04-24
Brooklyn, NY
Reviews:
·Optimum Online
·Verizon FiOS

turd tube

I smell an AOL / TIME WARNER style deal in the works!

While I'll concede that video is set to "explode" in the next couple of years as a more viable app over the internet, this deal reeks of bad ideas. Its as if google was trying to find a way to buy a company who can "deal" with it's copyright woes in a "once and for all" kind of way.. but that's not a good enough motivation to buy youtube, is it?

dvd536
as Mr. Pink as they come
Premium
join:2001-04-27
Phoenix, AZ
kudos:4

A sad day

if you can't beat em, buy em
chemaupr

join:2005-06-06
Alexandria, VA

Re: A sad day

google is just becoming another MS...

Romney2012
Defeat Obama 2012-Chg we can believe in
Premium
join:2002-03-03
USA
kudos:4

Re: A sad day

said by chemaupr:

google is just becoming another MS...
They are now on the Wall St treadmill. They have to keep those stock analysts and the shareholders happy.
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caco
Premium
join:2005-03-10
Whittier, AK

Re: A sad day

Does anyone here think google is worth $400.00+ a share? Google is way overpriced especially for a freaking search engine.
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Subaru
1-3-2-4
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Greenwich, CT
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Re: A sad day

said by caco:

Does anyone here think google is worth $400.00+ a share? Google is way overpriced especially for a freaking search engine.
damn thats what it's at now? hmm last year I think it was like $350 or something like that?

Matt
All noise, no signal.
Premium
join:2003-07-20
Jamestown, NC
kudos:12
said by caco:

Does anyone here think google is worth $400.00+ a share? Google is way overpriced especially for a freaking search engine.
HA HA HA HA ... no.

When established companies like Yahoo, IBM and Microsoft are traded at less than 1/4 of the GOOG price. No, it's 1998 all over again only this time, limited to one company.

While I love Google to death and use all their products almost, $400/share is insane.

Vodka2

join:2005-12-20
Sacramento, CA

1 edit
Not nessecarilly. To JUST say a share of Google is $400 and therefore this or that... is kinda asinine.

You also need to look at their market cap, their volume, and company performance.

To just come on and say "BAH ITS 400 A SHARE OMFG TOO EXPENSIVE" doesn't show a whole lot of experience on your behalf.

::Edit:: And because I'm too busy to look, I'm not going to form an opinion on where Google's stock is at right now

See 11 replies to this post

SRFireside

join:2001-01-19
Houston, TX
said by caco:

Does anyone here think google is worth $400.00+ a share? Google is way overpriced especially for a freaking search engine.
Keep in mind Google doesn't set the price of the current market value. The market does. If you want to blame somebody blame the .com investment speculators who go crazynuts buying stock no matter the price, which inevitably raises prices.

tsu9

join:2001-08-17
Wheeling, IL
Google really doesn't care what the analysts and shareholders think.
atowncrazy

join:2001-11-17
Carrollton, TX

Re: A sad day

Until the the stock drops by 40 cents. Thats a billion dolllars on wall street lets say that it swings down $1.20 or 3 billion dollars. Some large investment firm who owns the most shares has a direct line to someone that will care if that happens they will care then!!!
Kearnstd
Elf Wizard
Premium
join:2002-01-22
Mullica Hill, NJ
IBM isnt a mover and shaker in the stock market anymore, nowdays they are more like that old pickup truck. doesnt perform great but is allways there ready to go.
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hayabusa3303
Over 200 mph
Premium
join:2005-06-29
kudos:1

Sick and tried of Google.......

sorry i had to vent..

Upon reflection, I do not wish to post. Take me back!

Rick
Premium,MVM
join:2001-02-06
Waterbury, CT

1 edit

And, the winner is....

the owners of you tube who get to walk away with 1.65 Billion!

Yep. That's right! They get to walk away from a company that undoubtedly would have wound up going down it's own tubes from lawsuits...and walk right back into it now much richer, and as Google employees.

Imagine the restful nights sleep they'll finally get to have tonight knowing that all those headaches and liability now is being sold to Google.

This company, it's founders, and it's whopping 60 something employees were never ready for this kind of almost instant success the likes of which probably hasn't been seen since ebay's rise to popularity.

And actually, I think credit has to be given to the recording and media industry who stayed away from the lawsuits and inflammatory rhetoric to try to give them time to figure out how to handle what was occurring.

I doubt though that was due to their new found generosity though, but rather to the years of negative publicity they have had to endure because of their legal tactics in other arenas. They knew that a legal attack on you tube, and it's huge popularity among so many users, would backfire on them.

And so, wisely..this time around..they stayed off in the shadows waiting for something like this to happen.

Everyone probably wins, except those of us who have loved it for what it probably never could remain for the long term, which has been essentially a place for unfiltered access to any video we ever wanted to see.

What it will become is a place that the copyright holders dictate what's going to be shown, as long as they get their piece of the ad generated pie as well.

Google in the meantime, for a mere FRACTION of it's own 130 Billion dollar market value, gets to take out the internet leader in the video marketplace and replace it's own 11% share with the top spot..at least for a while.

The deals are already being announced today. The industry has been waiting for this.
And, it all really boils down to this statement in the article I attach to below.

"YouTube gets access to Google engineering that could, at the flick of a button, automatically filter out copyrighted material," he says. "The potential lawsuits go away if the technology problem is solved"

The real question though is this.

With that flick of a button, does YOU TUBE really also go away?

I think that answer is a pretty clear Yes..it will.

At least what it has been that has attracted so many to it.

It'll still be around, in some form. Well, lets face it, in the form that has put google at an 11% market share to this date.

Anyways..who wins?
The you tube founders who built the company that never really could be, Google who takes #1 for pennies on the dollar..the recording and media industry who get things to be their way with no lawsuits..

and, you and me?

I think we all know that answer.

»news.yahoo.com/s/usatoday/invest···YwNyaGw-

See 13 replies to this post

Dagda1175

join:2001-06-17
Goleta, CA

Let me repeat my comment from the last thread.....

how does this work? a company that makes all its money from advertising (a fairly flimsy model if your remember the bubble) buying a company that doesnt seem to have a way to make money at all...
what is step two, huh??

Michieru2
zzz zzz zzz
Premium
join:2005-01-28
Miami, FL

Re: Let me repeat my comment from the last thread.....


Should be something like this:

1.Buy
2:???
3.Profit!

AlexNYC

join:2001-06-02
Edwards, CO

YouTube = Google Video

I wonder if they will intergrate it in Google Video since they where direct competitors.
ATHF

join:2004-12-20
00000

3 edits

More search queries

wonder how much search queries will youtube add to google's score. Googles ads won't look bad compare to flash/java ads other sites use there by keeping people from leaving.

one good thing google is massive bandwidth google can pay for compare to youtube sometimes it used to load videos bit slow
South park make love not Warcraft pt1

»www.youtube.com/watch?v=ThYXTPTREMw


South park make love not Warcraft pt2

»www.youtube.com/watch?v=jCofU_7BIYc

gsfgfd

@shawcable.net

Re: More search queries

LMFAO hilarious shit

Cheese
Premium
join:2003-10-26
Naples, FL
kudos:1
Niceeeeeeeeeeee!

morbo
Complete Your Transaction

join:2002-01-22
00000
had never seen that one before. hilarious.

TOPDAWG
Premium
join:2005-04-27
Midland, ON

HMM sue the internet

The MPAA and RIAA need to just sue Al gore. Why if he did not build the internet nobody could share music and videos on it.

Hell just sue ISP's if not for them giving me the net I could not download music and movies.

insomniac84

join:2002-01-03
Schererville, IN

YouTube TV?

They have to go somewhere with this, they had google video, they must be wanting to go somewhere else with youTube.
bdsdc

join:2003-12-05
Allen, TX

Terrible Purchase?

For $1.65 billion dollars, Google probably knows what they're doing. I'm sure that it's all been considered here, there, everywhere before Google thought of tossing a chunk of change at somebody. The "terrible purchase" comments sound like terrible comments. Spending $1.65 billion probably wasn't a walk in the park.
patcat88

join:2002-04-05
Jamaica, NY
kudos:1

google video?

What happens to google video?

FalconX8

join:2002-06-24
Fairborn, OH

Re: google video?

All you all are a bunch of tools thinking youtube had no future. If youtube had no future you can be sure google wouldn't touch them.

The embedded youtube video presents google with a HUGE opportunity in advertising. that's how they make their money now. Pretty soon they'll be selling ads for each individual video at triple the value of what they charge for search ads. Yes you can be sure that in near future each youtube video will have an ad preceding it.

I expect to see certain restrictions on videos but not much. The biggest areas of concern are sports clips. Frankly I think a lot of studios already consider youtube as a tool to advertise their shows and perhaps sell in future.
Skippy25

join:2000-09-13
Hazelwood, MO

Re: google video?

I have only watched a few youtube videos but I can tell you right now they are all ads.

I say this for the simple fact that these are generally real user's posting videos of stuff they want. This shows stuff in the real world not some product placement crap that had to be negotiated and paid for. People playing music they like to the videos they "created" is more of an advertisement and endorsement for a band/song then any big wig commercial.

Vodka2

join:2005-12-20
Sacramento, CA

Three words...

EAT IT, CUBAN! :-D

inciter
Noobie
Premium
join:2000-08-30
Rohnert Park, CA

2 guys above a pizza shop

2 guys above a pizza shop.
2 years later 1.65 billion.
2 guys living the rest of life.

What a F%&ken Dream come true! Good for you guys!

2 Guy's doing something anyone else can do easly.
2 guys making everyone else cry like babies.
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MSauk
MSauk
Premium
join:2002-01-17
Sandy, UT
Reviews:
·Vonage

Re: 2 guys above a pizza shop

I cant believe people are saying they did a bad thing. Heck there is a reason why Google is so powerful, and it isn't because of bad decisions or bad investments people.

I am sure they did it for a reason, and good for those guys who started YouTube. Sounds like how Cuban made his money, whats next for them? Will they buy an NBA team

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