Google Snatches Up YouTube for $1.65B

Interesting, and I don't know if this would be a bad or a good thing. Google Video tends to have a little less variety, because they're more strict about certain aspects of video content. On the other hand, Google has tended to foster the right kind of innovation recently. We'll see, I suppose.

This is fantastic news for all involved with YouTube. Young entrepreneurs dream of this kind of acquisition, and to see it happen in less than two years is unheard of.

You're right: I don't think this acquisition would be about the underlying technology as much as Youtube's userbase and content. It's just Flash videos decorated with user accounts, tags and comments, after all, and it's been duplicated a few times over, already.

But, combine Youtube's userbase with Google's contextual search for ads along with Google's thoroughput, and there's some additional revenue and a primo media property there that may serve as the future alternative to network TV.

This blows my mind:

Selling to Mountain View-based Google (for 1.6 BILLION) will give YouTube more technological muscle and generate a staggering windfall for a 67-employee company that was running on credit card debt just 20 months ago.

If you can't beat 'em, buy 'em.

If a company is to buy YouTube, Google should be it. Best to have a company who does not re-brand things to its own (Blogger comes to mind) and has a "do no evil" clause in it's charter.

YouTube has become the primary altenative video option outside the mainstreem. We need to keep it that way.

Google Press release:

~n

Great news! Excellent news! I believe the pairing of YouTube and Google was the right move. Now, we can look forward to some great integration between both properties. YouTube now has the financial muscle (and protection) to move into new territory.

Excellent move!

Hetep and Respect, Good news - This is a good match, most of us who have channels think this is a match made in heaven. Many folks have put in some work in building their channels. There are some really interesting resources at the tube. Now there is some protection, that is a good thing. God is back in his heaven and the future looks bright.

If you have some free microseconds stop by and visit my channel.
http://www.youtube.com/aunk123

1.6 billions for two founders and 67 employees. Quite a few people are going to become millionaires. Good job guys!

I'll bet you anything this get integrated with Google's advertising network (as in, video ads) within the next 6-18 months.

I was just listening to the lastest TWIT and when this rumored purchase was brought up - John C. Dvorak made am extremely loud and somewhat less than convincing case for it being completely bogus. Personally, I am glad to see that he was wrong - although I prefer to use eyespot for video, I am happy to see this come together.

Google is on the verge of ruling the internet. They have their hands in everything. I am glad they bought YouTube because Google Video sucked.

Ha. I love the headlines I'm seeing for the Google buy-out. "Gobbles" "Snaps Up" It's a monster!

Google is very smart. I still don't understand how youtube (or google now) can make money at this. I imaging the bandwidth costs are OUTRAGEOUS. How can you make money with this business model? Just wondering.

As good a time as any to bring up EPIC 2014. I'd say we're on track, 'course by then it will be Googlatubazonivinebay.

Early retirement anyone?

The bell is ringing for those who are listening. We are still in a huge equity bubble where value has no reference ground.

My name is humpty. Allow me to bumpty. My mind's on the matter 'cuz my matter's on the mind.

Amazing considering they've only been around since Feb 2005.

I find this very exciting, actually. I was beginning to wonder why Google hadn't done anything exciting in a while. :-)

This will give them the jump they need to pretty much rule online video. If they play their cards right, this could be a defining moment in Internet history.

i wonder what google's longterm goal is for all of this.

I wonder if this is good? While the most popular videos on Youtube remain user-made productions, the real pull behind Youtube is the sheer ease it presented in accessing videos. I would read about something, say the new Daily Show, and I could find it on Youtube. I can watch old Sam & Max episodes there too and old ads, etc. In fact, often when I find a video on another site, I can find the same one of Youtube and bookmark it. Even when Youtube stopped movies from being longer than 10 minutes, users found a way around it. This is why Youtube is so popular - it's the first major hub for online video that is easy to use, even on moderate bandwidth links.

It's also sadly the reason why it can't become profitable, because even though the most popular videos are not illegal, the bulk of the site's traffic is likely caused by copyright infringement. Google and otjher video services just can't compete because they can't get that dirty. I think there's a pretty good chance that Youtube will start seeing defections to other services such as Dailymotion. Just because the web has learned the lessons from the dot com boom doesn't mean major startups are suddenly better geared to make money.

I like Youtube because it has EVERYTHING. But unless a high profile company like Google wants to up its lawyers' retainer fees, the illegal activity will have to be curbed. It's the same problem that hit the P2P networks who tried to go legit.