Was Gootube A Success?

Buying YouTube was one of the biggest investments ever made by Google, that's why the term GooTube was invented. They paid YouTube 1.65 billion dollars in stock 4 years ago, which was more than a thousand times than the estimated 12 million dollar initial investment so it was kind of hard to say no to the deal. What is YouTube by the way? YouTube is a website where users can upload and share videos. The site has a worldwide audience of around 72 million and it shows about 100 million videos per day. However, there had been several copyright issues in YouTube before, which made the site controversial, and people thought the site couldn't survive. Thanks to Google, they are still up and about until now. What then were the benefits that YouTube got from being bought by Google? Did Google also benefited from the deal? I personally think the deal was mutually beneficial.

A number of people were opposing to this deal 4 years ago. YouTube registered users were afraid that the site would be changed, or worse be charging fees for membership. They were afraid that after such partnership, YouTube will be controlled by Google. Other people, on the other hand, were frowning over the big amount of money that Google was offering. Some argued that it was too much, while some thinks otherwise. However, it can be seen today that this controversial issue had great outcome for both parties.

First, I am going to discuss why being bought by Google was a great move by YouTube. First of all, the deal recognized the need of the company to remain independent. That is why employees of YouTube were retained, and there were no major changes in YouTube, except for some advertisements of Google. Second, YouTube was involved in several copyright issues. In relation to this, it can be noted that Google has the technology to automatically identify what are these copyright materials and who owns them. Plus, they can also legitimize the use of these copyright materials. Third, this deal expanded the probability that YouTube videos will be watched more since Google is already an established search engine. Keywords typed in to Google will be linked to YouTube automatically. This is actually a great move because even if they refused to be bought by Google, another company, such as Yahoo would probably offer this to them again so they still have to make a difficult decision sooner or later.

Second, I also believe that Google also benefited from buying YouTube. The number one reason would be that their video services are crap. When they bought YouTube, they have added a higher level of video service to their company, which they weren't entirely successful with. This way, people saw that they were not only a search engine but a media engine as well. Another reason would be that YouTube had registered users and Google will know more about user behaviors eventually, which will enable the company to target advertising well.

Overall, it can be noticed that the deal was mutually beneficial to the parties involved. Over the last 4 years, it has been a very good partnership, and both have been very successful in accomplishing their individual plans so far.

By: Amber Alberthie

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