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Google to buy YouTube for $1.65 bil USD in stock

DailyTech reported last week the Google was in talks to buy online video site YouTube. The site currently holds nearly 50% of the online video search market and serves as many as 100 million videos per day.

Today, Google confirmed all of the rumors and announced that it has agreed to snap up YouTube Inc. for 1.65 billion dollars in stock. With the purchase, however, comes YouTube's baggage which consists of issues with copyright infringement and numerous lawsuits. The company is currently embroiled in a rather nasty fight with Universal Music.

Investors, on the other hand, for the most part have been enamored with the idea of a Google-YouTube merger. USA Today reports:

The deal would be by far Google's most expensive in its eight-year history. The lofty price underscores how important Google expects online video to become as more viewers and advertisers migrate from television to the Internet.

"This fits with Google's strategy," said Roger Aguinaldo, an investment banker who also publishes a dealmaking newsletter called the M&A Advisor, told the AP. "It's something that they couldn't build fast enough by themselves."

With this big merger now taken care of, who could be next on the takeover list? Investors are pointing fingers at a possible Yahoo acquisition of

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By cnimativ on 10/9/2006 5:30:42 PM , Rating: 2
why get youtube when it has google video :o

RE: why?
By TomZ on 10/9/2006 5:32:32 PM , Rating: 2
marketshare and mindshare.

RE: why?
By cnimativ on 10/9/2006 8:36:32 PM , Rating: 2
Kinda useless IMO. Buying something that it already has just for the "market/mind share". Youtube brand should not worth 1.6 billion.

1999 Internet bubble, Web 2.0 edition

RE: why?
By Trugentleman02 on 10/9/2006 5:37:27 PM , Rating: 2
because google video sucks, so buy something that the majority of the people already like.

RE: why?
By Aikouka on 10/9/2006 7:01:45 PM , Rating: 3
Personally I think YouTube went to the dumps when it changed to version 2 or whatever they call it. I noticed a huge drop in overall video quality, especially if you download the videos and full screen them. Before, it was easily bearable, but in version 2, it reminds me of the old 2mb real media video days *shudder*.

I've always liked Google Video a bit more, especially since downloading videos is so much easier.. and if you want an AVI, just change your user agent to a linux OS. Also, the quality of Google Video videos is much better. I also prefer the more streamlined interface. It's like the difference between Facebook and MySpace.

To kind of be more on-topic, I think this is essentially a huge waste of money on Google's part. The real reason YouTube is more popular is because of all the illegal content available on it. You try to find that certain music video but it's not on Google video... so you go to YouTube to get it. Eventually you just phase out the site that doesn't have what you want and keep going to YouTube.

RE: why?
By Josh7289 on 10/9/2006 7:22:23 PM , Rating: 2
With Google behind YouTube I expect illegal content on YouTube to drop dramatically, just like there is almost none of it on Google Video. Then maybe some other company will pop up...

RE: why?
By Vertigo101 on 10/10/2006 12:02:47 AM , Rating: 2
I've seen several complete movies on Google Video, including "Spirited Away".

RE: why?
By JNo on 10/11/2006 3:54:44 AM , Rating: 2
wow - that's such a good film, so beautifully and painstakingly illustrated, not to mention extremely touching, and you just completely ruined it by watching it in sh1tty google video format (in what looks like non-widescreen, non-Japanese (I know subtitles are challenge for some), stuttering framerate and rubbish resolution). Congratulations, you're the world's worst pirate.

"Paying an extra $500 for a computer in this environment -- same piece of hardware -- paying $500 more to get a logo on it? I think that's a more challenging proposition for the average person than it used to be." -- Steve Ballmer
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