January 18, 2006

YouTube Acquisition Rumors

Michael Arrington

41 comments »

UPDATE: (Jan. 19) I am now 95% sure this rumor is innacurate after receiving yet more information.

UPDATE: (Jan. 18) This rumor is highly speculative at this point after reading additional emails I’ve just received:

Rumors are flying that Silicon Valley based YouTube (profiled here) has signed an agreement to be acquired.

Whoever the buyer may be, it’s not News Corp. They have confirmed directly to me it has not acquired YouTube.

YouTube raised $3.5 million in venture capital just three months ago from Sequoia. It was founded in February 2005.

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  2. Ken McGuire :: Creative Imagination Blog
  3. Tinta Fantasma » YouTube, siguiente en la lista
  4. Read/WriteWeb
  5. blackrimglasses.com » TechCrunch » YouTube Acquisition Rumors
  6. Free Hogg »
  7. TechCrunch » Digg Acquisition Rumors
  8. TechCrunch en français » Rumeurs d’acquisition de Digg
  9. Bessed.com » Blog Archive » YouTube
  10. TechCrunch » Google to Acquire Writely?
  11. TechCrunch en français » Est ce que Youtube vient de relever 25 millions de dollars?
  12. technoogle.com Blog » Blog Archive » Rumors about YouTube Acquisition?
  13. Techcrunch » Blog Archive » Completely Unsubstantiated Google/YouTube Rumor
  14. TechCrunch en français » Des rumeurs d’acquisition de YouTube par Google
  15. TechCrunch Japanese アーカイブ » Google/YouTubeの根も葉もない噂
  16. Google buys YouTube at Clipland

Comments

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  1. Michael Whitney

    Murdoch is really pushing it to get into web 2.0. I have also heard news several times that he is eyeing Clusty which interests me, due to the fact the I started a search engine, and am working on improving search in general. Thats great news for YouTube though. I’m Sure Sequoia is happy. (very quick payoff)

  2. Jie Kang

    That was fast! Looks like others are taking a lesson from Google, buying up startups before they get too big and expensive.

  3. John Furrier

    I wouldn’t be surprised…. I wonder what their traffic is ???

  4. brianveen

    The site is currently (12:40 AM PST) down because they are “rolling out new changes”.

  5. Eric Willis

    Another one bites the dust!

    These web 2.0 companies are being acquired at a blistering pace. I´m definately not surprised by the acquisition of YouTube as it would be a nice fit for several companies. It will be interested to see if any of this generation of startups will remain independent,go at it alone, and then become large enough to make it to IPO.

  6. Ash

    Any bets on who the suitor is?

  7. jay

    If youtube is acquired, the price will be at least $150m.

  8. Daniel

    @Jay: your are just kidding. A valuation >$15m. is not realistic. I mean, what’s their competitive advantage? being first and network effects to reach a critical mass. There are no real switching cost involved.

  9. Damian

    Yahoo seems like the likely acquirer to me - they need something to do battle with Google and this gives them that. Right now, of course, the majority of really popular content on YouTube seems to be copyrighted material, but Yahoo can bring relationships to bear make that content legally available. My take on valuation: between $30-50m.

  10. Mike

    Makes total sense given the amount of overlap between MySpace and YouTube users.

  11. jay

    watch & learn. the real number will be even greater than $150 MM.

  12. Josh Stomel

    I am pretty sure I know who the buyer will be :-)

    It’s a real real good move for them too …

  13. Nik Cubrilovic

    “Makes total sense given the amount of overlap between MySpace and YouTube users.”

    That is the reason why they wouldn’t buy - if you already have the users, already have more traffic, then all you need is the technology - and that isn’t worth $150M. Think about it.

  14. Jakob

    I doubt MySpace is the buying considering they just added their own video service: vids.myspace.com/index.cfm?fuseaction=vids.home

  15. Greg

    YouTube has MAJOR copyright violation issues (as do others).

    It’s not going to be long before the legit producers and rightsholders come a knockin’.

    You cant build a viable longterm biz on ripped off content.

  16. pwb

    “You cant build a viable longterm biz on ripped off content.”

    Uhmmm….Google?

  17. jay

    Greg:
    It is very easy to navigate this. YouTube will be fine.

  18. anon

    let me say this.. a lot of their content is ripped off, but its a lot better than say revver, which is super sensitive about all of their content.

  19. sandra julso

    I have access to about 50,000 funny home video clips, cleared worldwide, which might help facilitate a YouTube sale!

  20. sandra julso

    By the way, I am not a naughty little blogger, but rather, the VP of the worlds leading clip distribution company, MEDIA ENTERTIANMENT GROUP, (Megnetwork.com)with headquarters in Scandinavia. Were the kind of folks that believe “content is King”.

  21. sandra julso

    By the way, I am not a naughty little blogger, but rather, the VP of the worlds leading clip distribution company, MEDIA ENTERTIANMENT GROUP, (Megnetwork.com)with headquarters in Scandinavia. Were the kind of folks that believe “content is King”.

  22. Adnan Afzal

    There is possibly no competitive advantage for Youtube beside doing it perfectly and doing it right the first time which is an instant attention getter. The site is big and could be formulated to instant content delivery wizard. The first thing comes to my mind as an advantage for online content delivery is the stats, very useful stuff for the amount of people using fast, slow, medium internet connections capable to view their online video trailors recently they started delivering. How come? possibly looking for a more Apple.com/Quicktime/trailors site? Nope. With this one it all come to potantial stats and how many people are interested in purchasing video clips which is only possible if you have a HUGE archive and deliver on small percentage of profits. It can be done, yes this site has potential that can EASILY wipe out almost all video content generating websites if done properly. What YouTube shouldn’t do is sell it or sell it now. The site will create almost double the value within the next two years if they continue delivery. Once it is taken over, the hostile nature for profits will ruin the pure fun of video uploads and even a Single Purchase/Buy link will increase Viewer Defection. So what is the potential? Tremendous. If YouTube is sold then YouTube guys never realised their own power.

  23. Karaoke Kev

    You can’t believe all these rumours! You’ll be telling us Google has bought it next! In all sincerity though, have you heard the rumour about Alexa being in the Google firing line?

    Karaoke Kev
    http://youtubekaraoke.blogspot.com

  24. Tom Jackson

    Now it’s finally happened and the ‘big G’ has a foot in the YouTube empire I hope we don’t see a load of ads all over the YouTube site. I can imagine Google wanting to plaster ads all over the place to earn some quick dollars.

    Tom

    http://tomjacksononline.blogspot.com

  25. SKIKIKII

    fuck u