YouTube sold to Google for $1.65 billion (0)Add to My Brief

Sushiv Mathur | 11/10/2006

YouTube sold to Google for $1.65 billion

Google, the online search company, agreed to pay $1.65 billion in stock for the Web site that came out of a social gathering. YouTube, the video-sharing phenomenon that is the darling of an Internet resurgence known as Web 2.0.

YouTube, founded in February 2005, had been coveted by virtually every big media and technology company as they seek to tap into a new generation of consumers who are viewing 100 million short videos on the site every day.

Google is expected to try to make money from YouTube by integrating the site with its search technology and search-based advertising program.

The success of the YouTube acquisition probably will lie in embedding video advertising into the clips that millions of people watch everyday from their computers. So far, YouTube's management has been reluctant to include advertising within clips for fear of alienating users.

tags: Technology

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