Google buys "YouTube" for 1.65 BILLION DOLLARS~!!!

[JDMnsxR]

2 new billionaires just made...

http://www.businessweek.com/ap/financialnews/D8KLB0EO1.htm

 

[LeftLane]

60 employees, created in December 2005 by 2 twenty-somethings, never made a profit.

Deja vu all over again.

Google probably just inherited all kinds of copyright violations.

 

[|Adeel]

Imagine what kind of money Google is sitting on when they can buy websites for that kind of money.

I've seen videos of the Youtube founders, they seem like nice guys wanting to build a great online community and I wish them best of luck and a happy life after Youtube.

 

[akira3d]

Google is flush with cash and I read somewhere that its founders make something like $14 million per day. They probably did inherit a lot of copyright lawsuits and Google's deep pockets will probably make those YouTube infringements even more worth pursuing. It will be interesting to see how Google handles this issue.

 

[jimmycinla]

.....created in December 2005 by 2 twenty-somethings...

http://www.youtube.com/watch?v=QCVxQ_3Ejkg

.

 

[jimmycinla]

Imagine what kind of money Google is sitting on when they can buy websites for that kind of money.

It was a 100% stock deal.
But yes Google is ugly rich.

 

[djdrock]

The american dream realized virtually overnight. Good for them!

 

[Malibu Rapper]

It was a good match for Google as they have the technology to flush out copyright infringements. In the long run I think it was a good buy for Google.

 

[flaminio]

2 new billionaires just made...

Well, it was "only" $1.65B, so at most you'd have one new billionaire :tongue: . Also, if memory serves a significant portion of Youtube is owned by VC firms, so all netted out the two founders will probably end up with only a couple hundred million dollars apiece, and that is in the form of Google stock, which they are surely unable to sell for some period of time.

Still, not bad for only a couple years' work....

 

[queenlives]

i'm with malibu rapper - i think it was a goog, err, good investment. copyright issues? sure, you bet - and from those will come agreements / settlements that will make google a provider of downloadable stuff that itunes can only be envious of.

only time will tell, though.

 

[mickeylex]

A slight correction to the title of this thread - Google actually agreed to buy YouTube. Now they start the process of Federal, State, etc approvals. Once all approvals are in, they Google can actually buy YouTube.

 

[jimmycinla]

... Also, if memory serves a significant portion of Youtube is owned by VC firms

Still, not bad for only a couple years' work....

In November of 2005, venture capital firm Sequoia Capital invested an initial $3.5 million; additionally, Roelof Botha, partner of the firm and former CFO of PayPal, joined the YouTube board of directors. In April 2006, Sequoia put an additional $8 million into the company, which had experienced a boom of popularity and growth in just its first few months

 

[Ski_Banker]

Business 101: Make vs. Buy

I don't see it. I don't have a strong Media Telecom background, admittedly, but YouTube's content is IMO weak and, by its nature, easily replicated. Entertaining, yes, but not limited to YouTube distribution. And the site has only been REALLY popular for about 6 months.

So what does $1.6Bn buy you, other than legal risk? Market share, mindshare, etc... not much else, on the face of it. *IF* Google spent even $1BN on advertising, they could quickly put them selves in #1. A billion bucks on marketing something like this is an absurd amount of money.

Youtube has 1st mover advantage and/but VC backing. Google has a $20BN debt free balance sheet and a FAR cheaper cost of capital than YouTube's VCs.

Google: Buy www.youtube2.com, market the hell out of it, and you'll still be in far less than a billion to buy replicable content and nonexistant customers. You should take a queue from Big Brother in Redmond, WA -- see a great idea, and find a way to make it yourself.

 

[Kinan]

GooTube

 

[Klayton]

Imagine what kind of money Google is sitting on when they can buy websites for that kind of money.

I don't think google just threw in 1,3 billion €. I'm sure they got a deep pocket but not that deep. I think they pitched it to other investors as a profitable investment.

 

[djdrock]

GooTube

LOL! :biggrin:

 

[Patdeisa]

I don't think google just threw in 1,3 billion €. I'm sure they got a deep pocket but not that deep. I think they pitched it to other investors as a profitable investment.

Deep pockets- if I recall correctly, something like 3.2 billion € in cash.