14 DAY TRIAL // Google has finally put an end to the speculations surrounding a possible acquisition of YouTube. Via a $1.65 billion in stock-for-stock transaction, YouTube has changed ownership. In this context, the Mountain View Company has promised that the online video sharing service will continue to operate independently and that Google will not intervene in neither YouTube's brand or community. So a YouGoogle or GoogleTube is out of the question.
But this is also a surrender from the Mountain View Company; a surrender of its Google Video service that has proved unable to take off to an extent where it would actually be regarded as a YouTube competitor. This is a case of losing a battle but winning a war. With an estimated market value of $125 billion, Google may have either acquired a diamond in the rough or a "Trojan Horse" for the $1.65 billion stock transaction. A diamond because of the advertising opportunities inherent with YouTube. A "Trojan Horse" because of the legal issues associated with the copyright infringement associated with the video content posted on the website.
"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."