Google To Acquire You-Tube for 1+ Billion

by Jeremy Schoemaker on October 6, 2006 · 38 comments

UPDATE Ok Everyone and there mom is now reporting what we said this morning but I was just told the final deal on the table is for 2.1 Billion for YouTube to take it or leave it.

Ya I know … your thinking bs ? But when have I let you down before? I have a really good lead on this one. The deal I was told is between 1.5 and 2 BILLION dollars.

This would certainly block out Microsoft who was rumored to be working on a 600 million dollar a year advertising deal for the video Giant.

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{ 25 comments }

1 Ben

Why would they do this?

Shoemoney 2 ssr

Wow shoe if this turns out to be true you outscooped everyone!

3 RobertS (sd2001)

In-freaking-sane.

My thoughts aren’t necessarily on the amount of money, which is insanity itself. I’m just wondering how long it will be before Google is on the wrong end of a government-backed anti-trust witch hunt? If they keep acquiring enough virtual real estate, eventually their seemingly never ending encroachment on the online lives and browsing habits of internet users will come under severe scrutiny and, inevitably, a heated backlash.

It doesn’t matter if they are actually breaking any laws or moral issues or not. As soon as Google gets big enough, there will be a resentment. I’m not trying to spread gloom and doom, but it’s times like these that I’m glad that I am diversified enough to where I don’t count on Adsense and Adwords alone for my entire income.

I simply can’t imagine that this exponential growth can continue much longer unchecked and without sever consequence.

4 Tim Schroeder

They are simply in talks. TechCrunch already talked about this. It’s also in the Wall Street Journal. http://online.wsj.com/article/SB116014813857884917.html?mod=yahoo_hs

I would be somewhat surprised if they bought you-tube. There are a lot of legal issues with that website.

5 Erik
6 Erik

Youtube was founded in Feb 2005, this has to be a record time from startup to worth over a billion.

7 Todd

Makes sense in the same way that it did buying the myspace advertising – keep the competitors from doing it.

8 Jeremy Palmer

Somebody forgot to tell Google it’s not 1999 anymore. Who in their right mind would pay a 10 figure sum for a company making 7 figures a year?

9 Jeremy Palmer

BTW – It’s on the home page of Y! finace now:

http://finance.yahoo.com/

10 ToddW

If google has the money why not gobble up the largest competition and turn it into google videos or atleast integrate it with their system 100%.

Google Video is probably a LOT more profitable than YouTube so not only are they goign to take out their largest competitor they are going to make MORE money AND not allow another LARGE company like MS to compete any more with Google.

I think google has proved in thepast to not be stupid ;)

11 Andrea

damn thats alot of money ;)

12 Dino

haha i say go for the money!

13 NevDull

Will they rename it GooTube?

An interesting aside is that the GOOG IPO only raised $1.67B. Of course, there was a later offering which raised another $4B…

14 DarthRay

TAKE THE MONEY AND RUN!!!

15 ToddW

How would you like to be the VC that funded YouTube what did they put in a few million and now worth at over a billion…. not to bad!

16 ian

You have to wonder how much of these offers are based on solid investment fundamentals or are they more about retaining market share and blocking the competition. Then again myspace looked overpriced at US$580 million at the time, now people are looking at it as a bargain.

17 Clint Lenard

Wow… this is insane. I didn’t hear about it until checking your blog, and of course you would have it first! lol

Great info. I’m definately looking forward to seeing what happens with this. This Google vs. MySpace war is some of the best entertainment E.V.E.R.

18 Webomatica

It may not be 1999 right now, but if YouTube sells for that price, it will be 1999 again. The doors will be wide open for anything goes.

19 lyzazel

I don’t really get it.
Go see some video on youtube and look above the video screen. They do have adsense on it so Google is making money from this already…

20 Someone

Uhmmm Jeremy,

Aquire is spelled Acquire.

So Google is going to ACQUIRE You-Tube.

21 k

Welcome to shoemoney.com newb, he never spells right but his content makes up for it ;)

22 Google Success

Well, Google has the money and they have to please their shareholders, so it may be a right move for Google. When a company becomes large in size, it sometimes become difficult to build something new, so buying makes sense. And it is definitely a good news for dot com companies. If one can start a unique niche internet based business and gain leadership in few years, the founders can make huge amount of money.

23 Miles Richardson

Personally, I think this would be an amazing move on google’s part. $2b isn’t a hell of a lot of money to them , though it’s definitely a large amount.

It’s already clear as day that videos are the next wave. I can see Google doing for videos what iTunes has done for music (on a much bigger scale than iTunes is doing with videos right now).

I’m betting that Larry and Sergei know exactly what they’re doing.

24 Adam

1.65 and they need to because the need to keep their stock price up, and they can find an easy bump in revenue here to have good earnings in the quarter after Christmas if they need it…

25 brandie

because there are many people who use you tube and they can make money from other companies wanting to advertise thier products to the world wide web

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