YouTube Bought by Google!
YouTube who has grown to about 34 million visitors a day in about two years has been bought by Google for $1.65 Billion. Not a bad little bit of earnings for that amount of time. Yikes!
It appears that YouTube will remain as it’s own entity but be a huge part of Google. It also appears that deals are being made with major television networks and a music label to distribute their content on YouTube and Google Video. This is a leading move to make Google the leading video advertising company on the web.
Just as blogging was and still is a hot thing, video content has been the next big thing. YouTube figured this out and created an amazing database of videos. Started by three gentlemen in their 20s, two of who used to work for Paypal. Hurley, Chen and Jawed Karim have built an internet based company that is very comparable, in growth speed, to Google. I am sure this deal has them all loving life right now.
According to one article…
“If Google takes a hands-off approach, doesn’t change the user experience in any meaningful way, the ownership change won’t do anything to harm YouTube,” said Greg Sterling, an analyst at Sterling Market Intelligence in Oakland, California.
It will be interesting to see if Google does in fact choose to keep things as they are already. YouTube is a great site and Google isn’t naive to that. It will be interesting to see where this leads both companies in the future.
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