Google Buys YouTube and Plans More Video Acquisitions
Posted on October 10, 2006
Google has acquired the extremely popular YouTube.com video sharing website. According to a Google press release the company will continue to operate as an independent website. Rumors had been buzzing about the deal in the blogosphere so it was not a big shock when the actual purchase was announced.
A Reuters article says Google plans more acquisitions of video-related companies.
Google Chief Executive Eric Schmidt told investors and news reporters on a conference call following news of the deal that YouTube will be "one of many investments" Google plans to make in the video field.YouTube.com has also announced new content deals with CBS, Sony BMG and Universal Music Group. You can learn more about YouTube's future by reading this new interview with Chad Hurley, CEO of YouTube on FT.com.
Schmidt said that Google will run YouTube as an independent company but also preserve its own Google Video as a separate operation. He described YouTube as the "clear winner in networking and the social side of video" for the way the site encourages its users to share videos with their friends.
Google's acquisition has sparked speculation about which of the many video sharing websites will sell next now that Google has acquired the most well-known video sharing tool. A Forbes article lists video sharing websites like VideoEgg, Metacafe, Break.com, Revver, Blinkx and Veoh as possibilities. Major web companies like Microsoft and Yahoo may be looking closely at these video sharing sites.