BREAKING NEWS: GOOGLE BUYS YOUTUBE
Google To Acquire YouTube for $1.65 Billion in Stock: Combination Will Create New Opportunities for Users and Content Owners Everywhere
Google Inc. (NASDAQ: GOOG)
announced today that it has agreed to acquire YouTube, the consumer
media company for people to watch and share original videos through a
Web experience, for $1.65 billion in a stock-for-stock transaction.
Following the acquisition, YouTube will operate independently to
preserve its successful brand and passionate community.
The acquisition combines one of the largest and fastest growing online
video entertainment communities with Google's expertise in organizing
information and creating new models for advertising on the Internet.
The combined companies will focus on providing a better, more
comprehensive experience for users interested in uploading, watching
and sharing videos, and will offer new opportunities for professional
content owners to distribute their work to reach a vast new audience.
"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. "Our companies share similar
values; we both always put our users first and are committed to
innovating to improve their experience. Together, we are natural
partners to offer a compelling media entertainment service to users,
content owners and advertisers."
"Our community has played a vital role in changing the way that
people consume media, creating a new clip culture. 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," said
Chad Hurley, CEO and Co-Founder of YouTube. "I'm confident that
with this partnership we'll have the flexibility and resources needed
to pursue our goal of building the next-generation platform for serving
media worldwide."
When the acquisition is complete, YouTube will retain its distinct
brand identity, strengthening and complementing Google's own
fast-growing video business. YouTube will continue to be based in San
Bruno, CA, and all YouTube employees will remain with the company. With
Google's technology, advertiser relationships and global reach,
YouTube will continue to build on its success as one of the world's
most popular services for video entertainment.
The number of Google shares to be issued in the transaction will be
determined based on the 30-day average closing price two trading days
prior to the completion of the acquisition. Both companies have
approved the transaction, which is subject to customary closing
conditions and is expected to close in the fourth quarter of 2006.
About Google Inc.
Google's innovative search technologies connect millions of people
around the world with information every day. Founded in 1998 by
Stanford Ph.D. students Larry Page and Sergey Brin, Google today is a
top web property in all major global markets. Google's targeted
advertising program provides businesses of all sizes with measurable
results, while enhancing the overall web experience for users. Google
is headquartered in Silicon Valley with offices throughout the
Americas, Europe and Asia. For more information, visit www.google.com.
About YouTube
Founded in February 2005, YouTube is a consumer media company for
people to watch and share original videos worldwide through a Web
experience. YouTube allows people to easily upload and share video
clips on www.YouTube.com and across the Internet through websites,
blogs, and e-mail. YouTube currently delivers more than 100 million
video views every day with 65,000 new videos uploaded daily and it has
quickly become the leading destination on the Internet for video
entertainment.
Caution Concerning Forward-Looking Statements
This document includes certain forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995,
including statements regarding Google's and YouTube's ability to
improve their services, create new business models and content-owner
opportunities, integration plans, the expected timing for the closing
of the acquisition and the plans to operate YouTube independently.
These statements are based on the current expectations or beliefs of
management of Google Inc., and are subject to uncertainty and changes
in circumstances. Actual results may vary materially from those
expressed or implied by the statements herein due to (1) changes in
economic, business, competitive, technological and/or regulatory
factors, (2) failure to receive regulatory approval for the
acquisition, (3) failure to retain the levels of traffic on the YouTube
site, (4) failure to compete successfully in this highly competitive
and rapidly changing marketplace, (5) failure to retain key employees,
(6) other factors affecting the operation of the respective businesses
of Google and YouTube, and (7) the failure of YouTube and Google to
work together effectively. More detailed information about these
factors may be found in filings by Google, as applicable, with the
Securities and Exchange Commission, including their respective most
recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q.
Google is under no obligation to, and expressly disclaims any such
obligation to, update or alter their respective forward-looking
statements, whether as a result of new information, future events, or
otherwise.
We broke this news from our sources on October 6, 2006
Rumor that Google to Buy YouTube
Oct 6
Neither Google nor Youtuble will confirm but I received a new a new Goodle Media player from Google.
Read into it what you want but the sending of the new Media player out at this time is a sign.
http://montebubbles.net/blog7/2006/09/business_financial_news.html
Shares of Google Inc. fell in late trading Monday after the company unveiled plans to purchase video-sharing site YouTube Inc. for $1.65 billion in stock.
Although some cynics have questioned YouTube's staying power, Google is betting that the popular Web site will provide it an increasingly lucrative marketing hub as more viewers and advertisers migrate from television to the Internet.
YouTube will continue to retain its brand, as well as all 67 employees, including co-founders Chad Hurley and Steve Chen. The deal is expected to close in the fourth quarter of this year.
"I'm confident that with this partnership we'll have the flexibility and resources needed to pursue our goal of building the next-generation platform for serving media worldwide," said Hurley, YouTube's 29-year-old CEO.
While most videos posted on YouTube are homemade, the site also features volumes of copyrighted material — a problem that has caused some critics to predict the startup eventually would be sued into oblivion, much like the once-popular music-sharing site Napster. But Hurley and Chen, 27, 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.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.
While Google has been hauling away huge profits from the booming search market, it hasn't been able to become a major player in online video.
That should change now, predicted Forrester Research analyst Charlene Li. "This gives Google the video play they have been looking for and gives them a great opportunity to redefine how advertising is done," she said.
Universal Music Group and YouTube Forge Strategic Partnership
Innovative Video Distribution and Revenue Agreement to Enhance Entertainment Experience and Embrace User-Generated Content While Fairly Compensating Artists
October 09, 2006 -- YouTube, Inc., a consumer media company, which enables people to watch and share original videos through a Web experience, and Universal Music Group (UMG), the world's leading music company, today announced an agreement offering YouTube and its users access to thousands of videos on YouTube from UMG's extensive roster of artists covering every genre of music. In addition, under this agreement, UMG broadly embraces the power and creativity of user-generated content, allowing users to incorporate music from UMG's recorded music catalog into the videos they create and upload onto YouTube. UMG and its artists will be compensated not just for UMG produced videos but also for the unique, user-created content that incorporates UMG music.
YouTube and UMG have also agreed to a process to protect UMG copyrights using technology to filter out UMG content that is not authorized to appear on the YouTube service. "With this strategic alliance, UMG brings an incredible array of entertaining video content to the YouTube community to help its artists communicate directly with fans. By allowing the use of their content in user-generated videos, UMG is embracing the creative spirit of our users and music lovers around the world while protecting the rights of their artists," said Chad Hurley, CEO and Co-Founder of YouTube. "As a new distribution channel for media companies, YouTube is committed to balancing the needs of the fan community with those of copyright holders to continue to provide the best video entertainment service on the Internet -- one that promotes individuality, respect and originality."
"Universal is committed to finding innovative ways to distribute our artists' works, and today's agreement with YouTube furthers that strategy by helping transform this new user-generated content culture into a mutually beneficial business opportunity," said Doug Morris, Chairman and CEO, Universal Music Group. "We pride ourselves in empowering new business models that create new revenue streams for content creators. You Tube is providing a new and exciting opportunity for music lovers around the world to interact with our content, while at the same time recognizing the intrinsic value of the content that is so important to the user experience."
UMG's strength and legacy of music flows from a diverse family of record labels which include: Interscope Geffen A&M, Geffen Records, Island Def Jam Music Group, Machete Music, Mercury Records, Polydor Records, Universal Motown Records Group, Universal Music Classics Group (which includes Decca, Deutsche Grammophon, Philips and ECM), Universal Music Latino, Universal Music Group Nashville (which includes Lost Highway, MCA Nashville and Mercury Nashville), and Verve Music Group.
About Universal Music Group
Universal Music Group is the world's leading music company with wholly owned record operations or licensees in 75 countries. Its businesses also include Universal Music Publishing Group, one of the industry's largest global music publishing operations.
Universal Music Group consists of record labels Decca Music Group, Deutsche Grammophon, DreamWorks Nashville, Interscope Geffen A&M Records, Geffen Records, Island Def Jam Music Group, Lost Highway Records, MCA Nashville, Mercury Nashville, Mercury Records, Philips, Polydor Records, Universal Music Latino, Universal Motown Records Group, and Verve Music Group as well as a multitude of record labels owned or distributed by its record company subsidiaries around the world. The Universal Music Group owns the most extensive catalog of music in the industry, which is marketed through two distinct divisions, Universal Music Enterprises (in the U.S.) and Universal Strategic Marketing (outside the U.S.). Universal Music Group also includes eLabs, a new media and technologies division, and Universal Music Mobile.
Universal Music Group is a unit of Vivendi, a global media and communications company.
About YouTube
Founded in February 2005, YouTube is a consumer media company for people to watch and share original videos worldwide through a Web experience. YouTube allows people to easily upload and share video clips on www.YouTube.com and across the Internet through websites, blogs, and e-mail. YouTube currently delivers more than 100 million video views every day with 65,000 new videos uploaded daily and it has quickly become the leading destination on the Internet for video entertainment.
