Posted on October 9, 2006 | Tags: Technology
Google is purchasing the video-sharing website YouTube for £883m ($1.65bn) in a stock-for-stock transaction, the companies announced on Monday after the close of the stock market. Following the acquisition, YouTube will operate independently to preserve its successful brand and passionate community.
YouTube, which launched in February 2005, has quickly become one of the most popular websites on the internet. Figures show there are 100 million videos viewed and 65,000 new videos added each day, with an estimated amount of 72 million individual visitors each month.
‘Universally Accessible and Useful’
“The YouTube team has built an exciting and powerful media platform that complements Google’s mission to organize the world’s information and make it universally accessible and useful” said Eric Schmidt, Chief Executive Officer of Google.
Mr Schmidt also told investors that YouTube will be “one of many investments” Google plans to make in the video field.
However the company will keep operating its own Google Video as a separate operation.
YouTube will retain its brand, and its 67 staff including co-founders Chad Hurley and Steve Chen who will keep their jobs.
“Our community has played a vital role in changing the way that people consume media, creating a new clip culture,” said Mr Hurley.
“By joining forces with Google, we can benefit from its global reach and technology leadership to deliver a more comprehensive entertainment experience for our users and to create new opportunities for our partners.”
Source: Google Press Release
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