Google is buying YouTube

[Larwee]

There are probably many YouTube fans among 5 Star members and visitors.

There are reports that Google has an interest in buying YouTube and that there are talks going on to secure a deal. There have been published reports of a 1.6 billion dollar purchase price.

It is interesting to consider that YouTube has made it to this point and only has about 2 dozen employees.

This could be a big help to Google in attracting advertisers. But Google could also need to deal with some copyright issues.

Many 5 Star members participate in Google AdWords and Google AdSense. With a purchase of YouTube, Google just might create ways to tie those two programs into it and benefit those of us who use these programs.

Many eyes will be on this one and there will probably be a lot more news about this.

Here are some links with details on what is known at the present time:

Google reportedly in talks to acquire video site YouTube - MarketWatch

Google seen making bid for YouTube - International Herald Tribune

Google Watch : Five Reasons Google Will Acquire YouTube (and 5 Reasons Google Won't)

ABC News: ABC News

[Clickbank Hotshot]

yes, nothing like attracting 50 million teenagers with no money in their pockets to improve the bottom line in Adwords revenue. i fail to see how this acquisition would improve the life of the majority of Adwords advertisers. maybe if i am selling gum or cola or jeans, but not that 50 inch plasma tube tv. YouTube? i wouldn't waste 5 seconds on a site like that. but then, to put it mildly, i'm not that hip... [insert square smiley here]

[Larwee]

Google is sometimes difficult to predict. They often will surprise people. If they are really trying to pull this off, then I am sure they have something in mind and have really looked into it. They could possibly buy YouTube and do many things with it that people wouldn't expect.

It is very likely that wanting to have more viewers to display their advertising to would be a major reason they would be interested in YouTube. But they possibly could achieve that with some type of a package similar to the one they have with MySpace and not go an buy YouTube.

MySpace has started to attract some older people with money, but they need more of them. It is possible that Google has something in mind that would make it possible for YouTube to also attract more people who would be attractive to advertisers.

About all that people can do now is just speculate. If this happens, then we will know more. Eventually all of us would see what Google had in mind for YouTube, and it is possible we might be in for a surprise. Of course I'm only guessing, just as so many others are.

[Larwee]

It is now official. Google has announced that it has purchased YouTube for 1.65 billion dollars in stock. The two companies will continue to operate independently.

Several distribution deals were also worked out. It looks as if some major companies were much more willing to become involved with Google owning YouTube than were when YouTube didn't have a big backer. Those in the distribution deals include CBS, Sony BMG, Warner Music and Universal Music Group.

Besides the advertising supported video content, it will also be possible to purchase music video downloads.

Here are links to some articles with more details:

Bloomberg.com: Worldwide

BBC NEWS | Business | Google buys YouTube for $1.65bn

Google buying YouTube - Oct. 9, 2006

[Larwee]

Here is some additional information that will provide more details and answer some of the many quesitons that some people might have about this deal.

This link is to a press release from Google. Like so many press releases, it is very positive in tone. Google Press Center: Press Release

Here is a link that will allow you to obtain much more information. You can listen to a conference call between some Google executives and YouTube founders. The conference call was this afternoon. It is about 30 minutes if you decide to listen to all of it. But a lot of ground is covered in the conference call. Google Investor Relations

[LonnyFX]

What do you think about the price? was it a good deal for google or is it bubble 2.0 ?

[Larwee]

There are all types of thoughts about the price that Google paid. Many think they paid too much, but Google possibly had something in mind by paying so much.

Some of the thinking is that Google paid it because they could afford to pay. At the same time by paying so much it sets a price standard and creates one that many don't want to pay and that others can't pay.

It also shows that Google is being aggressive while some are taking a much less aggressive approach. This likely could force Yahoo to make a move quicker than they had planned.

I am sure a lot of thought went into this and that Google has some plans in mind that the general public isn't aware of. It certainly was a good deal for the founders of YouTube and their employees. Time will tell if is a good deal or a bad deal for Google.