Rumors have been swirling around for a couple of months that Google was going to buy the out-of-nowhere video sharing sensation YouTube, even though Google had their own video sharing site. Well, those rumors have become a reality, as the search engine company has bought the video company for $1.65 billion of Google stock. The YouTube brand will remain intact, as will the company's entire staff of 67, including founders Chad Hurley and Steve Chen. You know what that means... high corporate positions and heftly salaries on top of the Google stock. Not a bad haul for a company that has yet to turn a profit.The interesting aspect of this deal is that Google Video, while not at the level of YouTube, was still a widely-used product. Is this going to get tossed in favor of YT, or will both embedded video systems continue on parallel tracks? The article doesn't say. Either way, Google seems to be following the Microsoft model of competition: if you can't beat 'em, buy 'em.
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Reader Comments (Page 1 of 1)
10-09-2006 @ 6:29PM
A Student said...
Dumbfounded, but congrats to the YouTube guys.
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10-09-2006 @ 7:06PM
Dwayne Conyers said...
If no one else will say it, allow me be the first to say...
I WISH I HAD THOUGHT OF CREATING YOU TUBE!
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10-09-2006 @ 9:16PM
trachein said...
You're kidding, right? Shades of the AOL/Time Warner acquisition (and we all know how well that has worked out). $1.65 billion for a company that has yet to turn a profit and, as Mark Cuban so eloquently put it several weeks ago, is mostly illegal. This may be the beginning of the end - learn to love ask.com
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