google buys youtube

October 12th, 2006

Yes , it is now Official … Google has bought Youtube . For some time everyone was whispering if it was just another rumour , but it has been confirmed that Google has indeed acquired the video hosting giant for a monsterous 1.65 billion USD.

So how does this changes things ? Well , for one thing … Google was not the only company gunning after Youtube , from what i know 15 other media companies were in the race including Microsoft. For the past few months , Google tried popularizing its own video network known as Google Video and there are also other Youtube clones , but none of them as popular as this. Now with Google picking up Youtube, it ads one more revenue stream - a video advertising network , to supplement its hugely successful text link ads program ADSENSE.

Even though it is feared that Youtube might run into several legal problems , turning a blind eye to numerous copyrighted videos   ( namely TV shows, Movie clippings ), as per Yahoo News

Hurley and Chen have spent months cozying up with major media executives in an effort to convince them that YouTube could help them make more money by helping them connect with the growing number of people who spend most of their free time on the Internet.

. Add to this , now with the sheer power and financial backup of one of the richest internet companies ( Google ), such legal threats hardly will create any dent to YouTube’s future progression plans. On a humorous note, Shoemoney says

Legal issues are not issues - Cmon your talking about the company that scans library books and puts them online… and gets away with it !

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