Google buys out YouTube

Web search leader Google has agreed to acquire top video entertainment site YouTube for $A2.2 billion in stock, putting a lofty new value on consumer-generated media sites.

The deal, the first to value one of the new crop of user-participation web sites at more than $US1 billion, combines two of the most popular Internet brands: Google - synonymous with web search and rapid innovation - and YouTube - a Silicon Valley upstart that has spearheaded the video-sharing craze.

In anticipation of the acquisition, investors pushed shares of Google up $US8.50 or 2 per cent on the Nasdaq on Monday to a closing price of $US429.00 - a level not seen since late April.

In extended-hours trade following the announcement of the deal, Google stock dipped to $US427.63.

The stock had already gained about 2 per cent on Friday when reports emerged that a Google-YouTube deal was in the works.

In the past two trading days, Google has added nearly $US4 billion in market capitalisation, or more than twice what the company has agreed to pay YouTube.

Analysts say the acquisition of YouTube by Google will thrust the web search leader quickly into the emerging market for video advertising, where it has only a tiny foothold compared with Yahoo and various Web start-ups.

YouTube says it serves about 100 million videos daily and has drawn scrutiny from major media companies for copyrighted material appearing on its pages without their consent.

In a move that appears to pre-empt the threat of legal action against YouTube, Universal Music Group and Sony BMG have signed distribution deals with YouTube, following a similar agreement with Warner Music Group last month.

- Reuters

http://www.abc.net.au/news/newsitems/200610/s1759238.htm

Google is just getting bigger and bigger.  What next?  Microsoft perhaps?  

Woah go google!

Hmmm what has not been thought of yet out there in this Internet World that I  can start up and sell for big dollars in a few years time ... first News Corporation (Rupert Murdoch) buys out MySpace for AU $780 million in July and now Google buys out YouTube for AU $2.2 billion.

Puts on thinking cap  

Quoted from AussieMaddog

... Puts on thinking cap  

you could buy out Eblah!

I'll follow that train of thought from Paula and take a pre - emptive stab in the dark so excuse my liberty here. Putting aside the founders of google and focusing on Dr. Eric Schmidt and his associations.

Schmidt is currently the Chairman of the Executive Committee and Chief Executive Officer  within Google. he has held Executive positions within Novell and Sun micro ( Java) and Bel labs.

since Novell - network software
and Java - networking
Bell Laboratories (Networking modems)

It stands to reason the Google is heading down the path of Networking so watch this space for

gogmodems and firewallgog  and mybe they might even head in the take over for gogo mobile.

Google Is Evil

Where did that line of thinking come from, Norman  ???

How is google evil?

OMG LawnB your avatar has a girl sitting down and eyes watching her.. I thought that was a nose! I just realised!

Quoted from dara

OMG LawnB your avatar has a girl sitting down and eyes watching her.. I thought that was a nose! I just realised!

It is a piccy from the Broken saints DVD.........pretty cool...

Oh ok!!
Am I right?

Dara Posted: August 25th, 2006, 9:01pm
ROFL! I thought it was a crooked nose!!!! LMAO!

i'll buy out EBLAH :p

Dara gets a little delusional at times, lamao too! I think the girl is in a long dress and standing up, myself. For the life of me though Dara I don't know how you get a crooked nose from that! More like deformed if that were the case. Heheheheh

Lol the red eyes and then it loooked like a nose