This is a very good move for Google as it opens up strategic possibilities in the area where the Internet was not very large – that is, video grow “ Web search leader Google Inc. on Monday agreed to acquire the leading video entertainment site YouTube Inc. for $ 1 has 65 billion euros to pay the highest price yet for consumer-generated media site. Google seems to be on the verge of buying YouTube Inc. for less than $ 1. catapult 6 billion in a deal that the Internet search leader, a leader of the online video revolution would.
Deal first the value of a new generation of user participation Web sites at more than $ 1000000000 combines two of the most popular Internet brands: Google, synonymous with Web search and rapid innovation, and YouTube, a Silicon Valley upstart That has lead the video-sharing craze. The acquisition combines one of the larger community and the fastest growing online video entertainment experience with Google to organize information and create new models for advertising on the Internet.
The new company is interested in providing a better experience for users more complete when you charge can be observed, and focus on the exchange of video and provide new opportunities for professional content owners to distribute their work to achieve a audience a new offer. ”The YouTube team has an exciting and powerful media platform that complements Google’s mission to organize the world’s information and make it universally accessible and useful,” said Eric Schmidt built, Chief Executive Officer of Google. “Share our similar corporate values, and both always put our users first and are committed to innovative improve their experience.
Together, we are natural partners to create a compelling media entertainment service to users, content owners and advertisers.” You Tube, which serve 19 months in a start in a garage now up to 100 million videos per day Grew, control by large media companies for copyright-protected music and videos, television has created for users to post without consent owner.
While YouTube said on Monday it was an avalanche of distribution agreements with record companies, some analysts caution could Google still inviting litigation with this acquisition. However, in anticipation of the transaction, investors pushed shares of Google dollars 8. 50 or 2 percent, the Nasdaq on Monday to a closing price of $ 429. 00 A level not seen since the end of April. In extended hours trading, Google climbed to $ 431 55th ”YouTube is phenomenally valuable in terms of traffic and the Internet sector, this is equally important place in Real Estate is important,” said Oppenheimer analyst Sasa Zorovic the combination of YouTube with Google’s advertising machine.
Analysts say the deal would boost Google rapidly emerging market for video advertising, which compares only a very small foot with Yahoo Inc. and start-ups. The all-stock deal, expected to close in the neighborhood structure, was to make tax-free to shareholders of YouTube and cheaper than paying cash for Google, said company officials. About YouTube February 2005, YouTube is a consumer media company for people to watch and share original videos worldwide through a Web experience. YouTube allows users to upload video clips and easily on the Internet through websites, blogs and e-mail. YouTube now offers more than 100 million videos viewed every day, with 65,000 new videos uploaded every day and has quickly become the most important on the Internet for video entertainment has become.
