Google to Buy YouTube?

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that's hard to believe, but let's hope it happens
Google has the backbone to support YouTube, and YouTube is growing fast enough to take on traditional media
 
I just read this myself, can you imagine?! It's not so hard to believe really... Google Video hasn't taken off to the scale of YouTube, and if Google were able to get YouTube they could turn it into a cash cow I think, with adsensing it alone.
 
Well with all the money, Google has to buy something. Might as well be something with the top buzz (and most controversial model)
 
I think Google Video is a superior product to You Tube. They allow larger videos of a much higher quality. Should be interesting if they can upgrade You Tube to a higher level of quality.
 
stock purchase?

http://apnews.myway.com/article/20061009/D8KLB0A00.html

..."

[FONT=Verdana,Sans-serif]SAN FRANCISCO (AP) - Google Inc. [link redacted] snapped up YouTube Inc. for $1.65 billion Monday in deal that catapults the Internet search leader to a leading role in the online video revolution. The all-stock acquisition unites one of the Internet's marquee companies with one of its rapidly rising stars.[/FONT]
[FONT=Verdana,Sans-serif]The price makes YouTube, a still-unprofitable startup, by far the most expensive purchase made by Google during its eight-year history...."[/FONT]


[FONT=Verdana,Sans-serif]Who knew $1.65B could seem small? ..... Consider googles' market cap is 130 billion... http://finance.yahoo.com/q?s=goog[/FONT]


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Crazy thing is, the only outside financial backing that YouTube ever got was from the venture capital firm Sequoia Capital invested only $11.5m total. They hit the motherload with this seed money.
 
That's awesome. Congrats to the guys at YouTube for sure. I've been reading articles lately on how YouTube will fail because they aren't making any money. Not quite :p
 
stickycarrots said:
That's awesome. Congrats to the guys at YouTube for sure. I've been reading articles lately on how YouTube will fail because they aren't making any money. Not quite :p
Click to expand...

They are definitely making money but nobody really knows what their monthly bandwidth costs total (reports vary between $1m to $2m a month) With 100m videos viewed a day, it has to be at least $2m+. Although for Google, this is peanuts as they already have tons of extra bandwidth and are experts in this area.

This site breaks down the possible ad revenue that they might be pulling in -
http://www.watchmojo.com/web/blog/?p=500#

Depending on the structure of the deal, all 67 employees of YouTube will likely all become millionaires. Based on investors receiving about 40%, founders getting about 40%, and 20% for employees.
 
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