In October 2006, Google Inc. announced that it had reached a deal to acquire YouTube for US$1.65bn in Google Stock. The deal closed in November 2006.
I take up the negotiations from Friday October 9th 2006, with Google in talks to acquire
Google Inc. is an American public corporation, earning revenue from advertising related to its Internet search, e-mail, online mapping, office productivity, social networking, and video sharing services as well as selling advertising-free versions of the same technologies.
Google was co-founded by Larry Page and Sergey Brin while they were students at Stanford University and the company was first incorporated as a privately held company on 4 September 1998 (Wikipedia.org).
For Google the purchase gave the company the capabilities to tap into the potentially lucrative online video and social networking markets as some market analysts at the time criticised Google for being too connected and reliant on advertising linked to keyword searches. This acquisition would further strengthen Google's stranglehold on online advertising and would give it an advantage over rivals such as Yahoo, Microsoft, MSN and NewsCorp (the company that owns MySpace). Experts at this time also felt that Yahoo, Microsoft & NewsCorp expressed an interest in buying
Bill Tanner, the General Manager of Hitwise, believed that because of this bid MySpace would need to promote its own video service more aggressively on its site to combat the Google-
Google bid this high price for
Eric Schmidt, the CEO of Google, at this time said that this acquisition, if it went through, would be one of "many investments" that Google planned to make in online video. He is convinced that the Google
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