Filed in archive Internet TV by martino on October 06, 2006
Company says: don't mind us, were just here looking for a little more online inventory to subvert under our control.
Can it be true? Is Google in talks to buy YouTube!?! According to the Wall Street Journal: Yes.
There is some logic to this. YouTube commanded 46% of visits to U.S. online video in August according to market research firm HitWise. That is over 100 million times daily. That compared to 10% for Google Video.
So, as the WSJ noted: "YouTube has stood out from the growing crop of online video services for its simplicity. YouTube serves up videos that generally can be viewed without users downloading special software. It also let consumers display its videos on other sites, such as blogs or personal pages on MySpace."
Google supposedly had $10 billion in cash at the end of June and the rumored price for YouTube is $1.6 billion. So, they could buy it if they want but it would represent a departure for them because they don't make many big acquisitions, preferring to grow their own business instead.
One other potential obstacle is that YouTube CEO, Chad Hurley has commented before that the company is not for sale and that an IPO is in their future. An IPO could create quite a large valuation given that some people think that MySpace is worth up to $20 billion.