Google’s Incredible YouTube Purchase 15 Years Later

Google purchased YouTube back in November 2006 for an impressive $1.65 billion in stock. This acquisition enhanced Google’s already robust portfolio of services and products, which includes internet search engines, cloud computing solutions, digital advertising technologies, and many more. Today, under Google’s umbrella and guidance, YouTube continues to grow as a leading online video platform reaching billions of users worldwide. In 2005 the American search engine company Google Inc. had launched a video service, Google Video, but it failed to generate much traffic, and Google was prompted to purchase YouTube for $1.65 billion in stock in November 2006.

Diving into YouTube’s corporate structure, you’ll discover a fascinating web of interconnected companies. YouTube is owned by Google, which itself is a subsidiary of Alphabet Inc. As the parent company, Alphabet oversees the operations and strategic decisions of its numerous subsidiaries. Jawed Karim, one of YouTube’s co-founders, uploaded the first video to the platform, making him the first-ever YouTuber. As a long-time Google executive, responsible for Google’s early advertising ecosystem, Wojcicki has played a key role in shaping YouTube’s advertising and monetization strategies, further cementing the platform’s financial stability and success. YouTube was created by three former PayPal employees, Chad Hurley, Steve Chen, and Jawed Karim.

The history and ownership of YouTube are nothing short of a fascinating journey. Starting with three former PayPal employees who saw the demand for an accessible and user-friendly video sharing platform, YouTube has grown into a global phenomenon and a crucial part of our daily lives. YouTube was born in 2005 when the three co-founders realized the need for a more accessible and user-friendly platform to share videos online. YouTube is an excellent platform for content creators to earn money from their videos. Ad Sales place targeted ads on video content, and content creators get 45% of the revenue from those ads.

  1. And they had the means to address this need, because Chen was an exceptional code writer, and Hurley’s gift for design could give a new Web site a compelling look.
  2. However, YouTube was growing at a much faster pace and had a considerably larger user base.
  3. YouTube quickly became a popular destination for digital content consumption.
  4. Google purchased YouTube back in November 2006 for an impressive $1.65 billion in stock.
  5. The headquarters of the American social networking and video-sharing platform YouTube are located in San Bruno, California.

YouTube has created multimillionaire celebrities and influenced online trends and popular culture in ways never seen before in society. The focus shifted from merely engaging users to also maximizing ad revenue. The recommended videos on your watch page started becoming more personalized and targeted towards your viewing habits. This change meant that you were now seeing content tailored specifically for you, enhancing your overall viewing experience.

The stock saw great success following the IPO, with shares reaching $350 in their initial offering on October 31, 2007, mostly as a result of profitable and well-performing online advertising sales. It also built a multibillion-dollar business that has eclipsed the majority of television networks and other media marketplaces. In fact, YouTube as a whole brought in more than twice as much money as any other major TV network in 2018 ($15 billion versus NBC’s $7 billion). Per the firm’s 13F filing for the period ended June 30, 2021, FMR LLC owned 13.1 million class A shares of Alphabet, or 4.4% of all outstanding class A shares.

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It was agreed that YouTube will work independently, keeping a separate brand and still own its headquarters in San Bruno. On December 21st, 2012, one of YouTube videos (Gangnam Style) hit 1 billion views becoming a record-breaking achievement. In February 2015, YouTube created the “YouTube kids” channel to serve children with content suitable for their age. Before YouTube was founded, other video platforms such as Realplayer, Windows Media Player, Google Video, and ShareYourWorld were available. However, these sites required many processes before uploading videos and were expensive to the users as one was required to pay before sharing videos. According to Britannica, the number of videos available passed 25 million in March 2006.

It has also become a significant platform for creators to share their visual content and connect with audiences. It had such a major impact that in 2005, within just a few months of its launch, it started trafficking 30,000 views a day. This grabbed the attention of many tech giants to purchase and own the company within a few months only. YouTube has had unprecedented social impact, influencing popular culture, internet trends, and creating multimillionaire celebrities. Youtube is an online video-sharing and social media platform which is owned by Google LLC, an American Multinational Technology Company.

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From late 2015 until his resignation in late 2019, he served as Alphabet’s CEO. Page has a net worth of almost $120 billion, making him the fifth richest person in the United States. While pursuing their doctorates at Stanford University in California, American software engineers Larry Page and Sergey Brin started Google on September 4, 1998.

In fact, at the time, back in July 2005, News Corp., the company – at the time – owned by the business shark Rupert Murdoch, had acquired MySpace for $580 million in cash, setting an incredible precedent. We spend a lot of time researching and writing our articles and strive to provide accurate, up-to-date content. However, our research is meant to aid your own, and we are not acting as licensed professionals. We recommend that you use your own judgement and consult with your own consultant, lawyer, accountant, or other licensed professional for relevant business decisions.

Before Google

The first-ever YouTube video, “Me at the Zoo,” was uploaded in the early days before the platform was public. The 18-second clip showed Karim and the team at the San Diego Zoo standing before the elephants, describing their trunks. Even under the new ownership of a tech giant, Chen and Hurley had control. They shared an office, from which they delegated tasks to newfound hoards of employees that came from Google. As long as they could deliver the promised traffic demonstrating YouTube’s monumental growth, they had say over the decision-making, Chen said.


The share numbers for Larry Page and Sergey Brin below are actually class B shares; their value is determined by counting and determining whether they have been converted to class C shares. Owned by Alphabet (the company behind Google), YouTube is the second most popular website worldwide, right free forex signals after Google Search. Now, let’s shift gears and look ahead at the potential future acquisitions that YouTube might be considering. While it’s impossible to predict with absolute certainty, we can make educated guesses based on current market trends and YouTube’s past acquisition strategies.

Rather than big financial institutions and mutual funds, individual investors drove the majority of the stock price increase. Divided into GOOG class C shares and GOOGL class A shares are the shares of GOOG. Under the tickers GOOGL and GOOG on the NASDAQ stock exchange and GGQ1 on the Frankfurt Stock Exchange, the corporation is listed. One of the biggest investment management firms in the world, Vanguard Group offers over 440 exchange-traded funds (ETFs) and inexpensive traditional products. With over $7.2 trillion in international assets under management (AUM), Vanguard is mainly a mutual fund and exchange-traded fund (ETF) manager.

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