Remarkable, it’s a done deal. Google has bought YouTube for $1.65-billion in stock. YouTube will operate as a wholly-owned subsidiary.
This had to have been a tough deal to bring off under all the scrutiny and leaks, so huge kudos to Google for completing the deal, as well as for keeping it from turning into an auction. Congrats also to Sequoia and Chad et al., at YouTube.
For myself, I feel vindicated for taking the view that YouTube skeptics were wrongheaded on this one. They overestimated the copyright complications, and they underestimated the value of this lovely piece of inventory for Google. It is ideally suited to the company’s AdSense technology.
Finally, and more broadly, this is going to have a lot of investment bankers flogging a lot of video companies. Revver, Veoh, etc., etc., are going to be deemed “in play”, and Yahoo/Microsoft/Fox and so on are going to be the focus of a great deal of selling attention. It will be interesting to watch to see how well they withstand the temptation to “get themselves a YouTube”.