Oct 6 2006
Google To Acquire You-Tube for 1+ Billion
By Jeremy Schoemaker
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.
- 38 Comments. What say you?
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Why would they do this?
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Wow shoe if this turns out to be true you outscooped everyone!
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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.
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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.
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msnbc reporting the same:
http://www.msnbc.msn.com/id/15157075/
I wonder what Mark Cuban things about this?
http://www.blogmaverick.com/2006/09/17/the-coming-dramatic-decline-of-youtube/
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Youtube was founded in Feb 2005, this has to be a record time from startup to worth over a billion.
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Makes sense in the same way that it did buying the myspace advertising - keep the competitors from doing it.
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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?
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BTW - It’s on the home page of Y! finace now:
http://finance.yahoo.com/
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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
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damn thats alot of money
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haha i say go for the money!
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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…
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TAKE THE MONEY AND RUN!!!
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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!
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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.
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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.
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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.
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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…
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Uhmmm Jeremy,
Aquire is spelled Acquire.
So Google is going to ACQUIRE You-Tube.
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Welcome to shoemoney.com newb, he never spells right but his content makes up for it
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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.
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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.
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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…
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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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[...] I am really bad with predictions, but I would say it won’t happen. I thought it wouldn’t happen when it was rumored Google would acquire Opera .. I feel the same with this one but when I read the Shoemoney has a lead that Google would have made a final 2.1 Billion offer for You Tube I feel it might be serious, he is often right! Good or bad move for Google? [...]
[...] Während WSJ noch über 1,6 Milliaredn US-Dollar spricht wissen andere schon von 2,1 Milliarden. Wir werden sehen. Hat Youtube jetzt eigentlich schon ein Revenue-Modell? Oder ist Reichweite immer vermarktbar, egal mit welchem Content? Diskutieren Sie mit! Von pascal Reaktionen auf diesen Beitrag via RSS 2.0 Bitte kommentieren Sie oder diskutieren via Trackback weiter! Kommentare Bitte kommentieren Sie! [...]
[...] According to ShoeMoney’s blog entry, the deal was between $1.5 to $2 billion and Google has made a final offer of $2.1 billion, take it or leave it. If I was YouTube, I would take it and run like hell! [...]
[...] UPDATE: We ontvingen net het bericht dat het bedrag inmiddels is opgelopen tot 2.1 miljard. Snel verdiend een kleine $500 miljoen erbij is een paar dagen. Let op! het betreft allemaal geruchten en niks is nog op feiten gebaseerd. Add to: Bloglines | document.write(”Del.icio.us”) | Digg it | +Google | My AOL | NewsGator | Slashdot | Y! MyWeb [...]
[...] Well it appears the story of the possible YouTube purchase by Google has progressed a little bit since yesterday, when I first posted about it, as Jeremy Schoemaker is now reporting in his blog, ShoeMoney, that Google has made a final offer of $2.1 billion, and it is now up to YouTube to either take it or leave it. You can read Jeremy’s scoop on the deal on his blog. [...]
[...] Shoe broke this yesterday and added a great synopsis of the deal today. [...]
Google might buy YouTube for $2.1 Billion…
I just read on the ShoeMoney blog that Google has made an offer of $2.1 Billion to aquire the popular video website YouTube. Very interesting… They apparently think that YouTube is nice virtual real estate - Google recently made a $900 million deal t…
[...] Mark Cuban thinks that not only would buying YouTube is a bad idea, but the move might be bad for YouTube as well. In this YouTube mashup of Mr Cuban, you can hear him speaking on the issue in his ‘own voice’. Shoe Money thinks that buying YouTube for $1.6 billion would block out Microsoft, as they seem to be willing to pay about $600 million for the site. In a more recently posted article, they list the top 10 reasons why the Google/YouTube deal makes sense. [...]
[...] UPDATE: We just recieved this message that the latest amount is $2.1 bilion. See also the post of shoemaker ` 10 Reasons Why The Google YouTube Deal Makes Sense`. Posted in Company | Add to: Bloglines | document.write(”Del.icio.us”) | Digg it | FURL | +Google | My AOL | NewsGator | RawSugar | Slashdot | Y! MyWeb [...]
[...] Taką rewelację można dziś przeczytać na blogu Jeremy’ego Shoemakera, aka Shoemoney, jednego z najbardziej znanych specjalistów z zakresu SEO i marketingu sieciowego. [...]
[...] We ontvingen net het bericht dat het bedrag inmiddels is opgelopen tot 2.1 miljard. Snel verdiend een kleine $500 miljoen erbij [...]