Google Buys YouTube - $1.65B (updated)

[Matt]

Report: Google in Talks to Buy YouTube
Friday October 6, 12:39 pm ET
Newspaper: Google in Talks to Acquire YouTube for $1.6 Billion

MOUNTAIN VIEW, Calif. (AP) -- Internet search leader Google Inc. is in talks to acquire the popular online video site YouTube Inc. for about $1.6 billion, the Wall Street Journal reported Friday, citing a person familiar with the matter.

Mountain View-based Google and San Mateo-based YouTube are still at a sensitive stage in the discussion, the newspaper reported on its Web site.

The blog TechCrunch had reported on rumors of the acquisition talks. Representatives from Google and YouTube did not immediately return calls to The Associated Press.

Founded in February 2005 by three former employees of eBay Inc.'s PayPal electronic-payment unit, YouTube is surging thanks to the increased availability of high-speed Internet connections and gadgets such as camera phones and digital cameras capable of taking video. Most of YouTube offerings are short amateur clips, although professional filmmakers, television networks and even political campaigns have posted materials.

YouTube users watch more that 100 million videos daily, and the site's market share tops that of similar services offered by Google and other popular Web sites, according to some research firms.

Google's video service lets everyday users post clips, too, and unlike YouTube, Google also gives them the choice of selling video. All YouTube clips are free.

When rumors circulated earlier this year that some major media companies were interested in buying YouTube, the company's chief executive, Chad Hurley, said the company was not for sale and a future initial public offering was possible.

Shares in Google rose $1.36 to $413.17 in midday trading Friday on the Nasdaq Stock Market.

thus, Mark Cuban thinks Google is a moron.

Billionaire investor and dot-com veteran Mark Cuban had harsh words Thursday for YouTube, the online site that lets people share video clips, saying only a "moron" would purchase the wildly popular start-up.

Cuban, co-founder of HDNet and owner of the NBA's Dallas Mavericks, also said YouTube would eventually be "sued into oblivion" because of copyright violations.

"They are just breaking the law," Cuban told a group of advertisers in New York. "The only reason it hasn't been sued yet is because there is nobody with big money to sue."

[Glenn]

Matt's already working on the [googletube] [/googletube] tags.

[Fool]

toogle.

[Glenn]

When are you going to get rid of that?

[b-diddy]

cuban raises a good point. eventually, youtube is going to have to ban all copywrited material, meaning youtube only becomes 1/2 as good. still sweet though, so i dont think this was a horrible move.

[Black Dynamite]

When are you going to get rid of that?

Yea man, its made me subconciously dislike fool for no apparent reason all summer.

[Matt]

at least edit it so his big melon head explodes or something.....

[Glenn]

Done.

http://news.yahoo.com/s/ap/20061009/...google_youtube

Google snaps up YouTube for $1.65B

By MICHAEL LIEDTKE, AP Business Writer
11 minutes ago

SAN FRANCISCO - Google Inc. 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.

The price makes YouTube, a still-unprofitable startup, by far the most expensive purchase made by Google during its eight-year history.

Although some cynics have questioned YouTube's staying power, Google is betting that the popular Web site will provide it an increasingly lucrative marketing hub as more viewers and advertisers migrate from television to the Internet.

"We are natural partners to offer a compelling media entertainment service to users, content owners and advertisers," said Eric Schmidt, Google's chief executive officer.

YouTube will continue to retain its brand, as well as all 67 employees, including co-founders Chad Hurley and Steve Chen.

YouTube cofounders Chad Hurley, 29, left, and Steven Chen, 27, pose for a photo with their laptops at their office loft in a San Mateo, Calif

[Matt]

it's official. google has more money that Scrooge McDuck.

[Fool]

Would you all prefer this?

CHAMPION

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