The official word is out, Google finally acquired YouTube for $1.65 billion. After completing the acquisition YouTube’s name will be retained and the will continue to live in San Bruno, CA will all its employees.
Why YouTube when they have Google Videos ?
Eric Says “Google Video is doing very well, integrating inside of Google, while YouTube was clearly winning the marketplace in social networking. Drummond says it is a stock transaction to be tax-free for YouTube shareholders, and somewhat cheaper for Google. Heâ€™s glad that YouTube shareholders want to be Google shareholders.”
I guess this acquisition will improve YouTube in several ways because now they have good financial backup by Google, but at the same time it will create Google’s monopoly over Video Sharing segment.
Earlier today I got my Soapbox (Microsoft’s Answer to YouTube), I didn’t try it yet. Let’s just wait and see what both of these giants have to offer in the near future.