Google Buys YouTube for $1.65 Billion in Stock
I thought it was bullshit when I heard the rumors. I thought I wouldn't care even if it went through - news just hasn't been jazzing me lately. It's official though, and now I actually do care. YouTube happens to be one of my favorite sites right now.

This is blowing my mind.

Here are some details:
> $1.65 billion is an all-stock deal.
> YouTube recently announced agreements with Universal Music Group, CBS Corp. and Sony BMG Music Entertainment.
> This is Google's most expensive purchase to date.
> Google climbed $8.50 to close at $429 in Nasdaq.

I still can't conceive of how $1.65 billion is anywhere near an appropriate price for YouTube.

I was just talking with Geoff Lamm and the only thing we could conceive of is that Google's looking to create an online distribution channel for TV shows...

This has me thinking more about that video entertainment social network I mentioned in Google As Interactive TV Social Network?

Let me just write that number out though: $1,650,000,000. It's astounding.

For marketers this means getting sharper with your video creation strategies and watching for new opportunities opening up in YouTube.

Hunker down for a news deluge...

Google Agrees to Buy YouTube for $1.65B
a gaggle of news coverage

Update 1:
Battelle listened to the conference call:

Why YouTube when you had Google VIdeo? Eric said Google Video was doing well, but YouTube was a clear winner in the social networking side of video...

Why stock, not cash? David Drummond of Google: So as to make it tax free for the shareholders.

How large are YouTube's costs? No comment save Eric: "they have been thrifty."

Monetizing YouTube: In the near term and mid term what is it coming from, search or video? Eric: We don't give guidance. We've come up with 20-30 places where Google tech can help. Most people believe this is just the beginning of the Internet video revolution.

Google Video doesn't go away ever (Eric).

Will you keep the brand separate: Eric: Yes. It has great value.

Battelle noted, as I did in conversation with Jon Revill and Jeremy Swiller, that this is the first significant out-of-brand aquisition for Google.

Check out - First Blush on GooTube - Conference Call
Garrett French - MarketSmart Interactive | permalink | +marktd |