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They did it! Google and YouTube formalized the deal

A few hours ago, representatives of Google and YouTube confirmed that buying a video service for $ 1.65 billion is a fait accompli. All legal formalities for this transaction will be completed in the 4th quarter of 2006.



Rumors about negotiations between one of the leaders of the Internet industry and the largest service for posting video files appeared just a week ago. They aroused the keen interest of network analysts for many reasons. Google’s intention to buy a service similar to the already existing Google Video raised questions about the future of a fairly successful project, which was provided with both software and legal solutions, as well as the love of visitors.



In addition, in early October, a large number of comments from analysts appeared on the Internet who did not believe in the future of YouTube due to copyright problems: owners of rights to certain video materials may file a claim against YouTube owners at any time the placement of users of some legally protected music videos, excerpts from films and TV shows. However, perhaps the appearance of rumors about the transaction were initiated by Google itself, which was interested in reducing the cost of YouTube.

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Not much time has passed - and the rumors were confirmed (quite unusual for transactions of this magnitude). It also turned out that Yahoo was actively negotiating with YouTube and was close to success, but Google did win. Why - is still unknown.



For the network industry shark, buying a service in Russia called “horror for dialaps.” Will be the most expensive in the entire history of the company: before that, Google spent “only” $ 130.5 million to acquire 15 relatively small companies.



Representatives of the parties held a network press conference ( audio recording ), answering some questions. Chad Hurley, one of the creators of YouTube, explained his decision to sell so that Google’s advertising capabilities are perfectly integrated into YouTube. Representatives of Google, commenting on the deal, say that Google Video will not be closed, and questions about the integration of the two services are still at the decision stage. Legal issues are being successfully resolved with copyright holders: both Google and not yet officially sold YouTube have announced agreements with major players in the media market - Sony BMG, CBS and Universal.



In general, selling a great, but still unprofitable service to the market leader is understandable. YouTube began work in July 2005 - and in just a year and three months the works of its creators and investors (for example, Sequoia Capital, which invested $ 11.5 million in service) will pay off with interest. Considering the advertising and technical capabilities of Google, it is safe to say that in the same short time the costs will pay off from the new owner, and YouTube will flourish, delighting its users.

Source: https://habr.com/ru/post/4498/



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