It's true: Google bought YouTube for $1.65 billion

, posted: 10-Oct-2006 11:02

YoutubeNews are in that Google went ahead and purchased YouTube for US$1.65 billion in stock. There's only one word to describe the deal, and that's "stunning".
YouTube has only been going since February last year, but has managed to corner the "user supplied Internet programming market" for videos. Google's own Video service clearly didn't manage to catch up with YouTube, like so many other services launched by the search engine giant.
According to the Google media release:
YouTube currently delivers more than 100 million video views every day with 65,000 new videos uploaded daily and it has quickly become the leading destination on the Internet for video entertainment.

Google's market capitalisation is around US$51 130 billion currently. At that, Google spent some 3.24 1.27 per cent of its marcap on the YouTube acquisition. It's all in Google shares, the amount of which will be decided based on the thirty-day trading average two days before the deal is sealed.
Chad Hurley, Jawed Karim and Steve Chen must be delirious with the deal. Unbelievable really.
Here's Charlie Rose interviewing Chad and Steve: First ever YouTube video - Jawed at the zoo: YouTube founders' profiles: Jawed Chad Steve Can't help thinking that there's no way there would be a New Zealand YouTube. I've seen estimates that YouTube generates some 200 terabytes a day worth of data. The bandwidth bill for that would be astronomical in NZ - and, would there actually be enough bandwidth even if someone could pay for it? Update I was looking at old figures for GOOG's finances. As Tim Haines points out, Google's market is much higher, at around US$130 billion. That would make the purchase price for YouTube around 1.27 per cent of the marcap.

Other related posts:
Video: Kim Dotcom and Mathias Ortman at the IITP Mega breakfast
Two-factor authentication broken
The problem with naming and shaming

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