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Google YouTube

By - October 06, 2006

Youtube-1-Tm

Remember back in July when I said that the most logical candidate for acquiring YouTube was Google? Now the Journal agrees, or at least, has one source validating a rumor from TechCrunch….

Google Inc. is in talks to acquire online video site YouTube Inc. for roughly $1.6 billion, according to a person familiar with the matter. The discussions are still at a sensitive stage and could well break off, this person says.

A spokeswoman for closely held YouTube could not be reached for comment. A Google spokesman said, “We don’t comment on rumors and speculation.” Rumors of such talks were reported earlier on the TechCrunch blog.


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9 thoughts on “Google YouTube

  1. Keith Cash says:

    Is this another, He who has the gold can make the rules? or Be the ruler?

  2. Joe Hunkins says:

    These valuations seem jaw dropping compared to what you’d see with offline biz, though as you note if anybody could manage YouTube successfully it would seem to be Google. That said I think Mark Cuban is right when he’s suggested that online and video and profits don’t mix well. The best hope is that the folly of using TV ads on TV will move to the folly of using them online. ROI? Who needs that anyway when you are sloshing around in billions of legitimate PPC and ill gotten click frauded gains.

  3. Kamal Jain says:

    Google getting youtube — that could make the longterm competition between Microsoft and Google more fun!

    Disclaimer: Although the commentator is a Microsoft employee, the opinion expressed is his own personal.

  4. Kevin Heisler says:

    YouTube could make another one of your 2006 predictions come true: Google stumbles.

  5. So far Google’s success depended on their homegrown research. Will this new buy rather than build model contribute to Google’s success in the future? Anyway, Google has the 2 M’s – Monopoly and Money !! They rule the world.

  6. Oliver Jones says:

    You ‘ll see you tube will never be bought by Google. Listen to my words and believe me that youtube will lose a lot of credits when it’s going to lose his case against coppyrightfirms. Every movie played on youtube will be checked , rechecked and it will take a lot of time. This will hurt the easyness of using youtube.

  7. Yes, it may be too early to speculate about this acquisition. Google, Microsoft or any other party who wishes to buy YouTube will have to make a detailed study not only about the valuation but other factors such as time involved in settling lawsuits about copyrights etc.

  8. I don’t think Youtube will sell to Google, at least for the moment. If I am youtube i will see what other offers made by Microsoft or Yahoo. Furthermore, in view of the value of Youtube, it is definately more than 1.3 billions.

  9. Dan Zen says:

    Well, now that it happened… here’s a poll we did where you get to predict if people will think it is a good idea for Google and then also vote at the same time: http://www.tapoll.com/poll/id/594706440 Give it a try!