Google Snaps Up YouTube
October 9th, 2006
In a move that will surprise few, Google has purchased YouTube for $1.65 billion in a stock-for-stock transaction. However, the statement announcing the acquisition made it clear that the video sharing website will continue to operate independently.
“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 Eric Schmidt, Chief Executive Officer of Google. “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.”
The question naturally arises as to how Google will integrate YouTube into its search results and whether the company was purchased as a revenue generator in its own right, or as a conduit into its millions of users, its technology, or its video library. Crucially the statement makes mention of Google’s massive advertiser base, suggesting that it has plans to improve on the monetization of its new toy.
There will be no job losses from YouTube in the immediate future.
Entry Filed under: Online Life
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