Google Will Buy YouTube for $1.65 Billion
It is official, Google to buy YouTube for $1.65 billion. Here is The New York Times story.
Here is an excerpt from the CNN Money story:
During a conference call, Google chief executive officer Eric Schmidt said the YouTube deal would be one of “many investments” that Google planned to make in online video. He added that the combination of Google and YouTube would make Google more desirable to advertisers.
“This is just the beginning of an Internet video revolution,” he said.
There is some debate about whether or not YouTube or other user-generated video sites will be able to attract the interest of top advertisers. But Tancer said that big corporations may be forced to start spending on ads tied to such clips.
“I don’t know if advertisers will have the choice going forward. They’ll have to start taking risks. People more and more are going to use brands in user generated content,” Tancer said.
The New York Times says that Sequoia Capital, a venture capital company, invested less than $12 million in YouTube and now owns one-third of it. $12 million? That’s pocket change for all the big news media companies, but where were they?
