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Rhino
10/9/2006, 03:39 PM
Maaaannnn, I want to sell something to Google for billions of dollars.

Google to buy YouTube for $1.65 billion (http://money.cnn.com/2006/10/09/technology/googleyoutube_deal/index.htm?cnn=yes)
Search engine leader looks to bulk up in the lucrative online video market.
By Paul R. La Monica, CNNMoney.com editor at large
October 9 2006: 4:19 PM EDT

NEW YORK (CNNMoney.com) -- Google, the Internet's leading search engine, announced Monday that it is buying popular online video site YouTube for $1.65 billion in stock.

YouTube, which was founded in February 2005, has quickly become the most well-known of several online video sites. More than 100 million videos, many of which are short videos created by the site's users, are downloaded a day on the site.
google_youtube.03.jpg

According to Internet research firm Hitwise, YouTube has about a 46 percent share of the online video market.

For Google (Charts), the purchase of YouTube gives the company the ability to tap into the potentially lucrative online video and social networking markets. Some analysts have criticized Google for relying too much on advertising tied to keyword searches.

The combination of Google and YouTube could further strengthen Google's dominance in online advertising, giving it an edge over rivals such as Yahoo! (Charts), Microsoft's (Charts) MSN and News Corp (Charts)., which owns the social networking site MySpace. Some analysts said Monday that Yahoo, Microsoft and News Corp. also had probably expressed interest in buying YouTube.

Reports of a deal first began to circulate on Friday. Shares of Google rose about 2 percent on the Nasdaq Monday after posting a similar gain on Friday.

proud gonzo
10/9/2006, 03:40 PM
wow

rebmus
10/9/2006, 03:44 PM
google will own the whole innerwebs before long.

royalfan5
10/9/2006, 03:45 PM
They still have to figure out how to make money with youtube, and make sure they aren't getting sued constantly over it.

Hot Rod
10/9/2006, 03:45 PM
Maaaannnn, I want to sell something to Google for billions of dollars.

You just gotta find that one brilliant idea and let them do the rest I guess.

Mjcpr
10/9/2006, 03:46 PM
You just gotta find that one brilliant idea and let them do the rest I guess.

Like creating a site that hosts people's videos? :confused:

I still don't know how You Tube could be worth that much money.

yermom
10/9/2006, 03:51 PM
because everyone uses it and links to it

kinda like google...

1stTimeCaller
10/9/2006, 03:51 PM
I'm sure Google does more but the only thing I use it for is a search engine. I guess I just don't understand how the innerweb works. It's like a series of tubes isn't it?

Mjcpr
10/9/2006, 03:52 PM
because everyone uses it and links to it

kinda like google...

But how does that generate revenue? I don't know how Google does it either.

I'm asking....I really don't know.

RacerX
10/9/2006, 03:54 PM
Ads.

RacerX
10/9/2006, 03:54 PM
oops

They do have products they sell to businesses.

Mjcpr
10/9/2006, 03:55 PM
Ads.

What ads? For what I use Google for, I never even notice any.

Rhino
10/9/2006, 03:55 PM
google will own the whole innerwebs before long. http://epic.lightover.com/ols-master.html

Rhino
10/9/2006, 03:56 PM
You just gotta find that one brilliant idea and let them do the rest I guess. Like the pet rock?

yermom
10/9/2006, 03:57 PM
I'm sure Google does more but the only thing I use it for is a search engine. I guess I just don't understand how the innerweb works. It's like a series of tubes isn't it?

magnets

RacerX
10/9/2006, 03:59 PM
What ads? For what I use Google for, I never even notice any.

There are text ads everywhere around the search page and in gmail.

BlondeSoonerGirl
10/9/2006, 04:00 PM
Like the pet rock?


Dude, that guy made millions.

Heh.

AustinTXHorn
10/9/2006, 04:02 PM
I hope they don't start making youtube a pay site, but it's probably only a matter of time.

RacerX
10/9/2006, 04:04 PM
magnets

and springs

yermom
10/9/2006, 04:05 PM
not google...

i'm sure they will just integrate it with Google Video

tbl
10/9/2006, 04:08 PM
But how does that generate revenue? I don't know how Google does it either.

I'm asking....I really don't know.
For youtube, the only source would be ads. For Google, they make ad money but also a lot of revenue from people registering with them to get the primo spots on their search engine. If you type in "hotels", somebody has paid top dollar to be at the top of the Google search page results.

Mjcpr
10/9/2006, 04:10 PM
For youtube, the only source would be ads. For Google, they make ad money but also a lot of revenue from people registering with them to get the primo spots on their search engine. If you type in "hotels", somebody has paid top dollar to be at the top of the Google search page results.

Hmmm....that makes more sense. I didn't know advertising dictated search results though...that's interesting.

SoonerInKCMO
10/9/2006, 04:10 PM
I Googled "how does google make money" and this was the first link listed:

http://investor.google.com/faq.html#money



How does Google make money? What is driving the company's growth?

Today, the majority of our revenue comes from advertising.

Advertisers are increasingly turning to the Internet to market their products and services. Google AdWords, our auction-based advertising program, enables advertisers to deliver relevant ads targeted to search queries or web content to potential customers across Google sites and through the Google Network, which consists of content owners and websites. Our proprietary technology automatically matches ads to the content of the page on which they appear, and advertisers pay us either when a user clicks on one of its ads or based on the number of times their ads appear on the Google Network.

We distribute our advertisers' AdWords ads for display on the Google Network through our AdSense program. We share most of the revenue generated from ads shown on a site of a Google Network member with that member.

skycat
10/10/2006, 01:24 AM
But how does that generate revenue? I don't know how Google does it either.

I'm asking....I really don't know.

Volume.

Paperclip
10/10/2006, 01:29 AM
Volume.

They can give me 50 singles.

GrapevineSooner
10/10/2006, 09:34 AM
Volume.

Pump up the volume!
Pump up the volume!
Pump up the volume!

UNSeeN_
10/10/2006, 02:52 PM
I'm sure Tom from MySpace feels slighted on the whole thing. YouTube became famous/popular from MySpace and Tom only got $300 some odd MILLION. He's probably thinking, "if I held out, I could've at least got $1 billion!"

Rhino
10/10/2006, 11:05 PM
i'm sure they will just integrate it with Google Video http://arstechnica.com/news.ars/post/20061009-7942.html

YouTube will remain a separate brand, and Google Video is not going away. It's unclear how the two services will be different from each other, but Eric Schmidt did mention that one of the principal strengths of YouTube was the social networking aspect of it. Google is issuing stock to pay the YouTube owners rather than dipping into its $10 billion war chest, and according to Schmidt that's because it becomes a tax-free deal for the YouTube team.

yermom
10/11/2006, 01:41 AM
weird

soonerboomer93
10/11/2006, 01:44 AM
should have bought some google stock when it went IPO

yermom
10/11/2006, 01:45 AM
should have bought some google stock when it went IPO

Microsoft too, eh?

TopDawg
10/11/2006, 12:35 PM
Pump up the volume!
Pump up the volume!
Pump up the volume!

Dance! Dance!

TopDawg
10/11/2006, 12:36 PM
I'm sure Tom from MySpace feels slighted on the whole thing. YouTube became famous/popular from MySpace and Tom only got $300 some odd MILLION. He's probably thinking, "if I held out, I could've at least got $1 billion!"

Is he putting his pinky next to his mouth as he says that?

JohnnyMack
10/11/2006, 01:03 PM
They can give me 50 singles.

Did you just go "Correct Change Bank" on us? Cause if you did, that's teh brilliant.

Stoop Dawg
10/11/2006, 02:58 PM
Hmmm....that makes more sense. I didn't know advertising dictated search results though...that's interesting.

According to their site, advertising does NOT dictate search results nor rankings. All advertising is supposedly labelled as advertising (or "Sponsored Links"). The actual search results are supposed to be calculated using a super secret algorithm that gives the best results first - and money is not one of the factors.