Google buys YouTube for $1.65bn

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Is this one of the biggest paydays on history? Google has struck a deal to buy YouTube, just 18 months after the site hite the net, for a whopping $1.65bn.

According to Google: “The acquisition combines one of the largest and fastest growing online video entertainment communities with Google’s expertise in organising information and creating new models for advertising on the Internet.” It has guaranteed to retain YouTube’s “distinct brand identity”, whilst "providing a better, more comprehensive experience for users interested in uploading, watching and sharing videos."

The deal came the same day that YouTube signed major deals with media giants Universal Music Group, Sony BMG – a deal with Warner Music had alreay been agreed. Only EMI remains of the big four record companies – but a deal is expected at some point in the near future. The Sony BMG deal is for a per-click revenue share, the Universal deal is a "strategic partnership", initially paying for each video used on the site.

TV channels are also moving towards YouTube, with CBS agreeing to provide content, as well as being gatekeeper for user-uploaded CBS video – with discretion over whether a clip is allowed to stay on YouTube’s servers. CBS will get a cut of advertising on pages it leaves online. If successful, the scheme could be extended to other broadcasters.

YouTube website

Via The Register

Dave Walker