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Postby Pete Biro » 10/09/06 10:04 PM

Holey Cow... Google just bought YouTube for something in excess of a BILLION dollars.... wowoowow... :p
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Postby Guest » 10/09/06 10:09 PM

$1.65 billion to be exact.


Postby Guest » 10/09/06 10:40 PM

Interestingly, it wasn't a cash transaction, but rather a pure stock-for-stock deal.

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Postby Guest » 10/09/06 11:47 PM

Interesting in that Google has $10 billion cash in the bank.

YouTube has been running for two years without showing a profit. Estimates are that to keep that much bandwidth available it's spending $2 million a month.

All 67 employees and the two founders will be kept on the payroll. This is the biggest purchase Google has made to date.

Taking the stock showed that the founders of YouTube believe in the core concept and that Google will take them to new heights. Smart guys.

Postby NCMarsh » 10/09/06 11:53 PM

The founders of YT were early employees at Paypal and already did quite well when that company was sold to eBay...

The venture capital company, Sequoia, is reaping something like 43 times their initial investment -- in less than 12 months (they put $11.5 million in, and are looking at a $495 million pay day).

A lot of folks involved in this are having a good time tonight.

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Postby Guest » 10/17/06 09:31 AM

The most interesting part of the deal is that it was made over lunch at Denny's in San Mateo, CA. I thought you only go to Denny's after magic meetings!

Postby Guest » 10/17/06 10:23 AM

Very interesting indeed. What exactly did YouTube sell to Google? They don't "own" or produce any of the content they show. As a matter of fact, they very often have to remove content at the threat of being sued over showing protected material.

Richard, you may want to meet the Google execs at Denny's yourself. At this rate, maybe you can hand off the Genii Forum for a cool billion.

Postby Guest » 10/17/06 10:30 AM

Suddenly I remembered this article from a few months ago about "YOUTUBE" fine print...anyone else read this? ... ntentSwap1

Although those who have posted clips to satisfy exhibitionist urges rather than serious commercial aspirations might think the issue does not apply to them, comments posted to the Boing Boing blog point out that, under the new terms, they might one day see their unique interpretation of the duck dance being used in a television advert without either their consent or knowledge.

While some watchers say YouTube has created the conditions only to protect itself from the re-use by external sources of any material posted there, others believe it could pave the way for new commercial revenue streams, particularly if the company were taken over by a large media group.

"The sky's still the limit, when it comes to the rights you surrender to YouTube when you upload your video. Perhaps even scarier is the idea that anyone who might eventually buy YouTube would automatically obtain these same rights," said Eliot Van Buskirk at the Wired News music blog Listening Post."

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