Google Buys YouTube

09 Oct 2006

Says MarketWatch: “after reports of talks with YouTube surfaced last Friday, many analysts said that they believe Google’s competitors will now seek to buy imitators of YouTube to keep pace. On Monday, the boards of both Google and YouTube approved the terms of the deal, which was announced after the market closed.

Over the last two days, Google and YouTube executives have compiled an extensive list of ways to integrate the two features. There’s now plans to soon incorporate YouTube videos into Google search results, and to make YouTube part of Google’s AdSense advertising feature, according to Google co-founder Sergey Brin.”

Says Coolz0r: Good, at least the videos will start loading now and no longer slow down the blog. Oh no, wait…

“YouTube founder Chad Hurley, during the same call, said that it was Google’s “revolutionary ad program that inspired us.” Plus, he added, “we wanted to remain independent. By working with Google, that’s still the case.”

Says Coolz0r: Damn. At least make Google host the videos… for the love of blogs and loading time…

Google to buy YouTube for $1.65 billion in stock.

Says Coolz0r: stock isn’t going to put butter on the bread, but okay. Let’s hope the AdSense brings in enough. Oh wait. There are hundreds of videos that violate the terms… hmm. A round of user-banning is coming up. The delete button is going to need replacement. Anybody knows a factory that produces ‘delete’ buttons? Major client coming up… :)

Is Google now responsible for all the illegal content? If so: lawyers, aim your arrows!

$1.65 billion. $1.65 billion. (I had to type it twice to fully comprehend.)

I thought YouTube was estimated on $1 billion. Did Battelle know? Even he thought $1 billion was way too much. Now it’s 65% more. Looks like the GOOG guys are trying to get rid of their stock. How much is there left to give away anyway?

Ah well. Good luck, YouTube, and congrats Google.

*continues living*


Posted by Miel Van Opstal in Uncategorized


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  1. synthetron

    October 9, 2006 at 11:56 pm

    Please join us in the collaboratively filtered realtime discussion:

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  2. Coolz0r

    October 10, 2006 at 1:04 am

    Synthetron summary:

    YouTube should split the AdSense revenue with the creator of the video, but since a lot of people upload content that’s not theirs, it might be a difficult issue.

    Google paid too much.

    There’s going to be a lot of copyright issues for both Google and YouTube.

    YouTube should host at and stream from Google servers to improve service and limit downtime.

    YouTube has to clean up a lot to make everything ToS compatible when running AdSense, a lot of users will be kicked out for violating the ToS of Google AdSense.

  3. Akira Media Designs » Blog Archive » Google Buys YouTube

    October 10, 2006 at 1:34 am

    [...] via: coolz0r [...]

  4. Bart

    October 10, 2006 at 8:54 am

    Always remember that figures like this are the value of stocks that will be exchanged at the day of the deal. Sometimes cash is involved, but in most cases that’s only a few percentages.

  5. Robin Wauters

    October 10, 2006 at 9:26 am

    Actually, Google has too much cash. Unless they want to be regulated as a mutual fund (with the according restrictions), they’re obliged to make huge investments.

    Excerpt from this Bloomberg article:

    “It’s a high-class problem,” said James Corcoran, managing director of Treasury International LLC, a Timonium, Maryland- based firm that advises companies on corporate finance and treasury functions. “You have lots of cash and your return on capital may be coming down.”

    “It’s critical that Google be permitted to invest its existing capital in instruments that would increase the amount of money available to fund future operations, new product development and acquisitions”, Google said in its July 20 application for an exemption from the Investment Company Act of 1940.