Google Buys Out YouTube.com For $1.65 Billion
Google Inc. acquired internet video site YouTube.com on Monday for a reported $1.65 Billion.
According to The Associated Press, the deal will now allow Google to become a major force in the online video market and is by far the most expensive purchase to date for the eight year-old company.
The move is being seen as a marketing tool for the company, as more viewers and advertisers migrate from television to the Internet. YouTube also announced on Monday a new partnerships with Universal Music Group, CBS Corp. and Sony BMG Music Entertainment.
Just last month the popular site also partnered with Warner Music Group, and it also recently formed a channel with hip-hop mogul Sean "Diddy" Combs, as SOHH previously reported.
"We are natural partners to offer a compelling media entertainment service to users, content owners and advertisers," said Eric Schmidt, Google's chief executive officer.
YouTube, which was started by 29 year-old Chad Hurley and 27 year-old Steve Chen in February of 2005, has grown exponentially in popularity since the site's inception, showing over an estimated 100 million video clips per day. As part of the deal, the site will also retain its entire roster of 67 employees, including both Hurley and Chen.
According to The Associated Press, the deal will now allow Google to become a major force in the online video market and is by far the most expensive purchase to date for the eight year-old company.
The move is being seen as a marketing tool for the company, as more viewers and advertisers migrate from television to the Internet. YouTube also announced on Monday a new partnerships with Universal Music Group, CBS Corp. and Sony BMG Music Entertainment.
Just last month the popular site also partnered with Warner Music Group, and it also recently formed a channel with hip-hop mogul Sean "Diddy" Combs, as SOHH previously reported.
"We are natural partners to offer a compelling media entertainment service to users, content owners and advertisers," said Eric Schmidt, Google's chief executive officer.
YouTube, which was started by 29 year-old Chad Hurley and 27 year-old Steve Chen in February of 2005, has grown exponentially in popularity since the site's inception, showing over an estimated 100 million video clips per day. As part of the deal, the site will also retain its entire roster of 67 employees, including both Hurley and Chen.
<< Home