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YouTube now GoogleTube?

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Submitted by jvh2171 on October 10, 2006 - 6:56am in

Is this a surprise or not? Well, I was reading a lot of rumors about YouTube being sold to Google - but all officials remained silent. But now the deal is officialy perfect: Google buys YouTube for 1.65 bln US$* - and all the employees at YouTube remain in the company.

Yesterday I was reading in Focus (a german economics magazine) about YouTube and the estimated costs for the monthly data-transfer-volume. The article said, that they are in the +10.000.000 Euro. Nobody knows about the revenue on some marketing YouTube did. I guess that most of the purchase price will be used to repay some bankdebts (but that's only a personal guess).

*Corrected after the first comment


Euro to US$

1.6 EUR = 2.01 USD

Conversion rate

You are right. I'm a bit confused because this morning I heared it in a german radio news-broadcast with Euro, later I read it with US$.

It was a shares deal from

It was a shares deal from what I gather?

For all you guys interested

For all you guys interested in the story I did some research tonight and published it on my German news site. The main question covered is "why did Google buy/pay 1.65bln $ for YouTube?". As most links lead to English pages the article might also be interesting for the Non-German crowd without understanding my Kraut rambling.

Internet, Video: Warum kauft Google YouTube für 1,65 Milliarden US-Dollar? (Update)

The interesting thing was how the numbers developed at Reuters. In their Update-2 they were talking about 4 bln $ just from Googles stock rising because of the speculation. When I finished my article Reuters was speaking of 6 bln $. That's already more then three times the money in stock gainings compared to what they needed to buy YouTube with Google stock :-)

As the deal is calculated on the Google stock average over 30 days starting two days before (last Thursday !) they announced the deal (Monday night) Google will gain all the difference :-)

Now it is also understandable why they hurried so much after Michael Arrington came up with the gossip.

Analysts still uncertain

The majority of financial analysts are still uncertain about the possibilty of creating a revenue for Google this time investment.

The intersting thing is, that Google itself has it's own video platform - so why do they buy YouTube?

BTW: Did you know that there is already the prOn pendant to YouTube? SexTube - ROFL. Actually this site is under construction - but they were online!

Check out PrOnTube, you know

Check out PrOnTube, you know how to write it right :-)

The first immediate revenue was the stock rising.

The financial analysts I was following yesterday said that they expect the refinancing to happen in three to five years from the AdSense revenue.

This article on GoogleBlogoscoped is pretty short and explains some revenue models:
Google’s Schindler on YouTube Acquisition

I know what you mean..

I was on that XXXtube site - but besides the possibility to get real hardcore stuff without any parental check or anything like that, this side (ok it's an underground project) is good in the idea but the technic behind is far worse than YouTube.

In my teenage times I had to buy prOn mags - this time our youth only needs the internet...

Ok the sharerising is one point - but it's only interisting for "short" investors.

But what about the costs for the problaby arising court trails? Look at this information from YLE.

Hi. I had heard that youtube

Hi. I had heard that youtube had been sold to google.

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