Google Buys YouTube
Google buys YouTube for 1.65 billion! Wow. Wish I would have thought of that before… but yeah, YouTube is just actually a rehash of the Streaming Video frenzy that hit the web 5-6 years ago, before the Internet Bust. But you have to remember, then, the fastest speed anybody at home could get would be 56kbps, which is roughly less than 32kbps in actual. Now, most users have at least a DSL connection of 512 kbps which makes downloading, streaming and watching videos on the internet a more enjoyable experience. And that is what YouTube capitalized on.
With almost only a year since it started, YouTube now gets 19.1 million visitors per month. It’s founders, Chad Hurley, 29, and Steve Chen, 27, are being compared to Google’s founders Sergey Brin and Larry Page, who are now 33, for their outlook in terms of technology and startup. YouTube is still considered a startup as it is living off through funds by venture capitalists, an $11.5 million capital. And much like Google when it first started, YouTube is not raking in any money at the moment.
With Google at hand to lead YouTube into gaining advertising prowess, the 1.65 billion buy out seems a good deal for Google. And for YouTube. It is good for Google since it is buying out competition which is much popular than its own Google Videos. This at least gives them some feet ahead of MSN and Yahoo in terms of Video Streaming distribution. On the other hand, that 1.65 billion can help YouTube in development and improvement of their technology.
Some people might and would call YouTube a sell-out, since they expect ads to flourish on the site with the possibility of making YouTube a paid service or at least having a premium service. But let’s see how Google tackles this one.
With almost only a year since it started, YouTube now gets 19.1 million visitors per month. It’s founders, Chad Hurley, 29, and Steve Chen, 27, are being compared to Google’s founders Sergey Brin and Larry Page, who are now 33, for their outlook in terms of technology and startup. YouTube is still considered a startup as it is living off through funds by venture capitalists, an $11.5 million capital. And much like Google when it first started, YouTube is not raking in any money at the moment.
With Google at hand to lead YouTube into gaining advertising prowess, the 1.65 billion buy out seems a good deal for Google. And for YouTube. It is good for Google since it is buying out competition which is much popular than its own Google Videos. This at least gives them some feet ahead of MSN and Yahoo in terms of Video Streaming distribution. On the other hand, that 1.65 billion can help YouTube in development and improvement of their technology.
Some people might and would call YouTube a sell-out, since they expect ads to flourish on the site with the possibility of making YouTube a paid service or at least having a premium service. But let’s see how Google tackles this one.
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