View Full Version : Google Buys YouTube for $1.65B
Toronto
10-09-2006, 05:52 PM
http://news.yahoo.com/s/ap/20061009/ap_on_bi_ge/google_youtube
that is alot of money for a companie that doesn't even make a profit?
saadie
10-09-2006, 06:12 PM
soo .. after like 4 to 5 years .. the internet would be called google ? :?
Mattk
10-10-2006, 02:47 AM
Doesn't Google have Google Video? I don't understand this move.
DeMoN
10-10-2006, 04:15 AM
omg what is the point now?
Bet youtube wont show Xrated stuff no more NOOOOO
Mattk
10-10-2006, 05:57 AM
Yeah, there's no X-rated stuff on Youtube. There are regular porn sites for that stuff.
I agree, Dani. It seems Google Video and YouTube will get amalgamated somehow.
TopGearNL
10-10-2006, 07:23 AM
LMAO :mrgreen:
Skaala
10-10-2006, 07:58 AM
so, wa are officially posting vids at GoogleTube now?
how does google have so much money?..... don't they pay you to have their ADs on your site? and there is nothing on there webpages?..... :| damn google. i never really use them anyways. now i really wont. i am banning google.
Skaala
10-10-2006, 11:16 AM
how does google have so much money?..... don't they pay you to have their ADs on your site? and there is nothing on there webpages?..... :| damn google. i never really use them anyways. now i really wont. i am banning google.
one of the things they make money off, is businesses paying to get listed on top within chosen key words.
ahhhhh good point Skaala. i forgot about that. you have to pay to get noticed on their searches. :roll: stupid google.
They have taken a calculated risk here - buy spending this much money on "YouTube" they are in fact crerating a new "dot com gold rush" - this time for "video hosting".
Afterall, Google does not make mistakes - they must know... and if they are spending a billion on a video streaming and hosting facility, there must be money in it....
This then influences the market to "spend" on the "next big thing" which they are positioned to exploit now.
Another bandwagon, and if you have money and get in early and are able to capalitize on the opportunity, there is money t be made - but obviously not as a YouTube competitor now :P
stmoritzer
10-10-2006, 11:35 AM
Agree with you on that one RC45 :)
Well if RC is right then i am going to investing in some severs and storage and have a hosting site. and let google buy me out. :D but really you could make some money being a hosting site for webpages, video, etc. just rent out your space. damn. i have a money making offer. who wants in? :mrgreen:
Well if RC is right then i am going to investing in some severs and storage and have a hosting site. and let google buy me out. :D but really you could make some money being a hosting site for webpages, video, etc. just rent out your space. damn. i have a money making offer. who wants in? :mrgreen:
It's sadly not what you know... but who you know...
...Schmidt thinks so highly of Hurley and Chen, 27, that he compared them to Google's now 33-year-old co-founders, Sergey Brin and Larry Page.
Brin sees the similarities too. "It's hard to imagine a better fit with another company," Brin said during Monday's conference call. "This really reminds me of Google just a few short years ago."
The two companies even share a common financial bond: Sequoia Capital, an early Google investor that owns a roughly 30 percent stake in YouTube. Menlo Park-based Sequoia remains a major Google shareholder and retains a seat on the company's board — factors that might have helped the deal come together after just a week of negotiation.
...
Selling to Mountain View-based Google will give YouTube more technological muscle and advertising know-how, as well as generate a staggering windfall for a company that was running on credit card debt just 20 months ago. [b/]
To conserve money as it subsisted on [b]$11.5 million in venture capital, YouTube had been based in an austere office above a San Mateo pizzeria until recently moving to more spacious quarters in a neighboring city.
Since the company started in Hurley's garage in February 2005, YouTube has blossomed into a cultural touchstone that shows more than 100 million video clips per day. The video library is eclectic, featuring everything from teenagers goofing off in their rooms to William Shatner singing "Rocket Man" during a 1970s TV show. Most clips are submitted by users.
The key words in the above quote are highlighted... these are my highlights.
There are many thousands of us with great ideas and the drive to fulfill them - however, only a handful ever get access to the money to pull them off. ;)
With $11m dollars of "venture capital" it is hard to not end up rich.. your company may or may not make a profit (YouTube is still in the red) but you end up with wads of cash in you rpocket no matter what happens.
Again - not what you know, but who you know ;)
The moral of the story?
Network, network, network......
Never discount the value of a casual aquaintance one day paying off by being able to introduce you to the right person.
You of course also need to be lucky enough to meet the right person at the right time as well.
The - if all those planets align, right person, right time (for you and them) you may just have the chance of selling them you ridea... even if your idea has no possible profit potential in the "normal" sense of the word.
After all - Sequoia Capital, whom are equity stake holders in Google, just made back their $11m investment in YouTube when their Google share value increased the day the sale was announced - imagine when the sale actually goes through.
I am wondering if the SEC will even let this obviously "conflicted interest" deal go through.
In effect they should not.
evoWalo
10-11-2006, 02:40 AM
omg what is the point now?
Bet youtube wont show Xrated stuff no more NOOOOOi think you got it mixed up with pornotube.com
afaik the 1.65b deal was in the form of a stock swap so no actual money was shelled out. with that much money i could form my personal banana republic (http://en.wikipedia.org/wiki/Banana_republic).
Sir_GT
10-13-2006, 03:40 PM
It's actually pretty common sense if you look at it...
Google makes money of searches...
People search for stuff on YouTube...
If Google knows what sort of things people search for on YouTube, the information would have real-world value to entertainment and media companies...
Google would also know what sort of things peole are uploading... and which ones are getting the most hits... again, more valuable information...
In return, Google can charge advertisers to appear on youtube's landing page, or even in the top of the most viewed list...
It made perfect sense actually. :|
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