Wow. It's not every day that all the
big rumors turn out to be true. Google has just officially announced its
acquisition of YouTube for $1.65 billion in stock. The press release wastes no time in attempting to reassure fearful users--the press release's second sentence is, "Following the acquisition, YouTube will operate independently to preserve its successful brand and passionate community." It goes on to say that YouTube will strengthen and compliment Google's existing video business, and that it will retain all of its existing employees and remain headquartered in San Bruno, California. YouTube has yet to release a statement. I, for one, welcome our new GooTube overlords.
Tags: acquistion, business, google, merger, video, youtube
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Comments
7
Subscribe to commentsCan ErtenOct 9th 2006 6:16PM
I can't believe that. Google is becoming more inevitable. I think they did a great job... Only the big companies survive..
Whogle?Oct 9th 2006 8:20PM
Google? The name sounds familiar... what do they do again?
Handsome JonOct 9th 2006 8:59PM
Umm, I think they're in the shrimping buisness.
GODOct 9th 2006 9:29PM
GooTube? I like Yougle better.
Mr Wave THeoryOct 10th 2006 1:46AM
I wrote that Google should buy YouTube and how Mark Cuban was wrong about YouTube. My argument is strictly based on valuation of comparable companies in the space - that is a company like YouTube is more similar to Comcast than it is to WPP. In defense of Mark Cuban, I do want to mention that Mark is right about one thing. All of this is being made possible my magical Google stock which is building in very aggressive assumptions about its growth trajectory. Depending on whose numbers you believe at any given them, Google would have to grow 70-90% annually to justify its current valuations. That is a crazy assumption that investors are making. However, if everyone is crazy, some of us are less crazy than others for doing crazy things. Google, Larry, Eric, and Sergei are not crazy. They are in fact the few who are less crazy than others for doing the deal. The crazzies are the investors and analysts who got the stock to $500 in the first place.
http://mrwavetheory.blogspot.com/2006/10/165-billion-for-youtube-btf.html
PaimOct 10th 2006 9:19PM
They only paid that much? Why did Facebook counter whoever (Viacom i think) with a $2bil offer
Claudiu SpulberOct 10th 2006 6:51AM
Wow, and this is a company that started 20 months ago. That's like 87 million per month of activity.
This seems to be a stock-for-stock payment, and given the GOOG is now at $429, this makes about 3.9 million shares, isn't this like 1% of Google?