More about the YouTube-Google deal at Denny’s

October 11, 2006

News:  It’s quite fitting for the unconventional, “outside the box” Google founder Larry Page to broach a billion dollar offer (in Google stock) at a local Denny’s.  Apparently, the group consisting of Page, Google CEO Eric Schmidt, and YouTube founders Steve Chen and Chad Hurley had orders of eggs and chicken strips.

Analysis:  I wonder who picked up the bill.

Related post:  Google-YouTube Deal struck at Denny’s

MySpace miffed by YouTube

October 11, 2006

News:  This may sound grade school-lish, but even in the business world petty fights may arise.  According to the Wall Street Journal, Rupert Murdoch’s News Corp., which owns the ever popular social networking site MySpace, apparently was miffed by YouTube’s failure to respond to News Corp.’s email request to allow it a chance to bid on the company before the deal had been closed with Google.  As a threat, MySpace has suggested it will stop its users from using YouTube videos on its site.  (More from searchenginewatchblog)

To smooth things over, Google CEO Eric Schmidt will meet this week with News Corp. executives, including Rupert Murdoch.  Google already has a $900 million deal with MySpace to place video advertising on MySpace. (More from Australia IT)

YouTube founders downright giddy

October 10, 2006

If you just got a deal worth $1.65 billion in Google stock, how would you feel.  A little giddy?  Well, here’s how Chad Hurley and Steve Chen felt yesterday:

Google and YouTube’s conference call about purchase

October 10, 2006

Earnings Cast has the audio with Google’s Eric Schmidt, Sergei Brin, and David Drummond, and YouTube’s Chad Hurley and Steve Chen.  Tech Crunch has a summary of the call here.

Also, the official press release is finally up.

Google-YouTube deal struck at Denny’s

October 10, 2006

NYT writer Andrew Ross Sorkin provides a fascinating account of how the deal between Google and YouTube was struck.  Basically, the discusions started at a Denny’s near YouTube’s offices — yes, Denny’s — in San Bruno just last week, with the founders of YouTube Chad Hurley and Steve Chen and Google co-founder Larry Page and CEO Eric Schmidt:

“The deal came together in a matter of days. After rebuffing a series of other overtures, YouTube’s founders decided to have lunch on Wednesday with Google’s co-founder, Larry Page, and its chief executive, Eric E. Schmidt. The idea of a deal had been broached a few days earlier. The setting was classic Silicon Valley start-up: a booth at Denny’s near YouTube’s headquarters in San Bruno, Calif. The Google executives threw out an offer of $1.6 billion and autonomy to continue running the business.

“That set off a marathon of meetings and conference calls over the next two days, which kicked into even higher gear on Friday, when news of the talks began to circulate, putting pressure on Google to sign a deal before a rival bid emerged. In fact, the News Corporation sent a letter to YouTube seeking to start talks but never received a response.”

This changes everything: Google buys YouTube for $1.65 billion

October 9, 2006

It’s official.  Google just bought YouTube.  I will have more commentary as more details come.

Ben Charny of Market Watch has more details here.

Path now clear for Google to buy YouTube?

October 9, 2006

News:  Reuters is reporting that the Board of Directors of both Google and YouTube are meeting to vote on the $1.65 billion deal in which Google will acquire YouTube.  If approved, the deal could be announced later today.  (More from Reuters)

Analysis:  The timing of YouTube’s announcement of major deals today with Universal Music, Sony Music, and CBS supports the conclusion that a deal with Google is imminent.  YouTube’s deals with 3 major content holders today have cleared away some of the copyright concerns, and made it less risky for the Google board to approve the acquisition of YouTube.