GoogTube is happening for $1.65B - and I understand why Chad could not attend tomorrow's Search SIG

It is all over the news so you don’t need a rehash: the rumors were true and Google has acquired YouTube for $1.65B in GOOG stock. There are several remarkable facts in this acquisition, and I only have a few minutes in between meetings (before meeting a company involved in online video something, just as it happens) to mention them:

• Copyright issues, pirated content and YouTube often appear in the same sentence – and now that Google owns the company, you can only bet that they will be solved one way or another.
• Google gets another foot in content hosting, after Gmail, Blogger and GoogleBase. They are not only about organizing the world’s information anymore – just in case you wondered.
• YouTube will remain a separate operation, even physically, which seems to indicate that the risk of messing up the secret sauce post-acquisition has been considered.
• From a pure deal perspective, Sequoia Capital (which also backed YHOO and GOOG) adds another icon to the list of successful exits they have had. Their 30% investment in YouTube for $11.5M has turned into $500M in less than two years – a 43x multiple, or more if the GOOG stock gets a pop over the next 30 days.
• Now that the leader (46% of the online video market) has been taken out, I can’t wait to see what happens next – especially as Yahoo was rumored to be involved in the deal until the last minute, and I am sure that Fox, Viacom, AOL and the others were not too far behind.

I have had a lot of questions over the past 48 hours regarding the timing of tomorrow night’s Search SIG on The growing online video ecosystem. No, I was not aware of anything going down but I thought it was a good time to step back and discuss the developments of that industry. And I am not surprised that Chad Hurley declined to join us because of "his crazy schedule" . I look forward to seeing you all planning to attend, and have a great conversation about what happens next with Om and the rest of our panel.

PS:

• Best logo goes to my friends at PaidContent
• The official Google statement is here

Comments

[Joseph Hunkins]

Killer timing on the Video SIG! I wonder how many of the attending companies tomorrow would be thrilled to sell out at 1/100th this YT valuation?

[synthetron]

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[Dick Deluxe]

A sign of the times that oceans of content inherently worth nothing can cumulatively be worth billions! Very fun and interesting watching the content wizards here in SoCal squirm more with each pasing day. YouTube explodes, Tower implodes, and the fun is just beginning.

[vps hosting]

This is indeed a very good google stance. I am sure now all the disputes relating to youtube would be resolved.