Google’s $1 65 Billion Acquisition of YouTube: the Untold Story

what is the company that owns youtube

Google helped improve the video-sharing platform’s speed, efficiency, and effectiveness, making it more accessible and user-friendly for global users. 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. You know, one of the things that happens when you run a video-sharing service the size of YouTube’s is that you can’t possibly kind of, you know, curate it all individually. And so they rely on mathematical algorithms to do so much of the work, to filter out, you know, pornography and things like that. And often what will happen is that they will, you know, make a tweak or something, and then it’ll change things and affect users and creators. This was met with a couple of different concerns that I’ve heard from multiple people that raised this over the time.

Steve Chen was an engineer at PayPal before he co-founded YouTube. His strong engineering background allowed him to help develop the necessary server infrastructure and software to support the platform’s rapid growth. This is from another huge YouTube star, a guy who goes by the name of PewDiePie. Got his start by videos of him just playing video games and commenting on them. Despite the fact that YouTube and its hosting provider, Limelight Networks, don’t share their business accounting information, plenty of blogs guess about how much money YouTube must pay monthly for all that bandwidth.

A startup enthusiast, Ravpreet has written content about startups for over three years and helped them succeed. You can also find her cooking, making singing videos, or walking on quiet streets in her free time. Who are YouTube’s founders, and what are some of the YouTube’s essential milestones? Let’s unfold these questions about a platform that redefined how we share and consume content in this digital age. Through its acquisition by Google and the subsequent support from Alphabet Inc. YouTube has continued to thrive and maintain its independence, evolving into a platform where anyone can share their creativity and connect with others across the globe.

And we don’t – here sitting in Northern California with our biases, we don’t want to put our thumb on the scale in any way. And so it was sort of – it was the response was actually, this proposal is un-Googley (ph). Shortly after the site opened on a limited (“beta”) basis in May 2005, it was attracting some 30,000 visitors per day. By activtrades forex review the time YouTube was officially launched on December 15, 2005, it was serving more than two million video views each day. By January 2006 that number had increased to more than 25 million views. The number of videos available at the site surpassed 25 million in March 2006, with more than 20,000 new videos uploaded on a daily basis.

A lot of the early reviewers would get these iPhones and these models before anyone else could have them. And it was this, you know, beyond just – if you want to leave a review of your phone, typically in a newspaper or blog, a video is a much more illustrative way to demonstrate, oh, here’s this cool, new gadget. Whether or not YouTube is a financially successful organization, it’s certainly an important entity. Many people in the television industry believe that in the future, televisions and computers will merge together.

“I went back and I showed the papers to Chad, to Steve, and then we called Yahoo and canceled the meeting,” Yu said. By early October, YouTube was close to signing a deal — but not with Google. YouTube had a meeting on the books with Yahoo for a full day of due diligence, and the plan was to sign a term sheet for an acquisition at the end of the day, according to Yu. “I lived in San Francisco, but I couldn’t even afford the time to go back and forth between Palo Alto and San Francisco,” Levine said. “I took a hotel room right next to the law firm where I slept an hour or two a night.” “There was a time when we reached out to all of our investors and all of our friends and said, ‘Hey’ — and this email actually went out — ‘if you have any servers that you’re not using, can we borrow them?'” Yu said.

what is the company that owns youtube

At Google Cloud, Looker helps customers accelerate their ability to analyze data, deliver business intelligence, and build data-driven applications. The deal closed after antitrust regulators in the European Union approved the acquisition with conditions directed at protecting users’ health data and preserving competition in the sector for wearable tech. Google stressed that the acquisition is about devices rather than data and made commitments that user data would not be used for Google ads.

When did YouTube start?

This is one reason Alphabet has faced several antitrust lawsuits filed by the U.S. Alphabet has become one of the world’s largest technology conglomerates, with a market capitalization of $1.78 trillion as of Feb. 3, 2024. The company posted a net income of $73.80 billion on revenue of $307.39 billion for 2023. Revenue increased 8.7% from 2022, and net income increased 23.05%.

In the beginning, YouTube had no means of generating revenue — it depended on investors like Sequoia Capital, which provided enough funding for YouTube to emerge from beta testing and go live in December 2005. Google Inc., the octafx review popular American search engine, was founded in 1998 by Larry Page and Sergey Brin. Originally titled Backrub, the two then-Stanford University graduate students built the engine in their college dorms, according to Google.

YouTube is an online video-sharing platform where you can share, watch, and upload videos. It is a platform that offers various features, making it a popular platform for creators and users alike. Here, creators can upload their video content of any length and format. Based on every video upload, you can also add different annotations and captions and use its other features while uploading the videos to make them rank higher. On the other side, users can search and watch videos on any device, including smartphones, computers, tablets and more.

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That was when they realised there was no easy way to share videos online. To serve that need, the three founders changed their concept to a video-sharing platform, and YouTube was born in 2005. The history and ownership of YouTube are nothing short of a fascinating journey. Starting ifc markets review 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. The immense growth in traffic at YouTube created its own set of problems.

  1. DoubleClick was founded in 1996 and became one of the stock-market stars of the dot-com era as a leader in the first generation of online advertising during the 1990s.
  2. YouTube has become an indispensable part of our lives, providing a platform for sharing and exploring videos of all kinds and connecting billions of people across the globe.
  3. YouTube’s estimated gross profit margin is lower than its competitor Meta (Facebook and Instagram), with 38% compared to 80% for Meta.

Most legacy business intelligence systems at the time required users to have engineering and programming expertise to extract data and analyze it. Looker simplified the process by taking programming queries and modifying them to read more like natural languages, such as English. This allowed users to perform data analytics without having to “speak” code. However, Google also generates revenue from other sources, including sales of apps, in-app purchases, hardware, and licensing and service fees, including those received from Google Cloud and other products.

How Much is YouTube Worth Today?

Since its purchase by Google, YouTube has expanded beyond the core website into mobile apps, network television, and the ability to link with other platforms. Video categories on YouTube include music videos, video clips, news, short films, feature films, songs, documentaries, movie trailers, teasers, live streams, vlogs, and more. Most content is generated by individuals, including collaborations between YouTubers and corporate sponsors. Established media corporations such as Disney, Paramount, NBCUniversal, and Warner Bros. Discovery have also created and expanded their corporate YouTube channels to advertise to a greater audience.

The crowd-sourced mobile traffic advisory device and navigation service was acquired five years later by Google, whose own Google Maps app was already seven years old by that time. Acquiring Waze was one way to eliminate competition, but Google also saw Waze’s traffic-updating features as novel enhancements to Google Maps. Google announced its planned buyout of Looker in June 2019, finalizing the purchase in 2020, leveraging its capabilities through the Google Cloud service.

The untold story of Google’s $1.65 billion acquisition of YouTube, from those who lived it

YouTube has progressed from a small-scale business venture to an established company achieving global breakthroughs. It currently ranks as the second most popular social media platform, allowing users to watch and upload videos on desktop and mobile devices. YouTube Kids is an American children’s video app developed by YouTube, a subsidiary of Google. The app was developed in response to parental and government scrutiny on the content available to children.

YouTube is a $15 billion-a-year business, Google reveals for the first time

That may seem like a small sum for the behemoth that YouTube is today. But back then, the video site had been around for less than two years—even if it was growing like a weed. That means Google massively beat Wall Street expectations on profit, but missed on revenue. That could be one reason why Google may be disclosing YouTube and Google Cloud revenues for the first time.