Tuesday, October 10, 2006

Google purchases Youtube.com for a clearly exhorbitant sum of 1.6 billion

Google Founders
Originally uploaded by vegasmike433.
A profitless Web site started by three 20-somethings after a late-night dinner party is sold for more than a billion dollars, instantly turning dozens of its employees into paper millionaires. It sounds like a tale from the late 1990’s dot-com bubble, but it happened yesterday.

Larry Page, left, and Sergey Brin, two founders of Google, are hoping the profit potential of YouTube will outweigh the liability potential.

Big Bets, Uncertain Payoffs
Adding On to the House of Google (October 10, 2006)

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

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