PARAV GUPTA

30-MBA-2013

HISTORY OF GOOGLE

Google was founded in 1998 by Larry Page

and Sergey Brin.

Google Inc. is an American multinational corporation

specializing in Internet-related services and products.

Google began in January 1996 as a research project by Larry

Page and Sergey Brin when they were both PhD students
at Stanford University in Stanford, California.

Total number of companies acquired by Google till

date is 129 whereas Apple has 48 and Facebook has 39.

BACKGROUND OF YOUTUBE

Youtube was created in February 2005 by three former

Paypal employees : Chad Hurley, Steve Chen and Jawed
Karim.

Founders of YouTube from left to right:

Chad Hurley, Steve Chen, and Jawed Karim.

It was created as a way for people to upload videos and share

content, for free.

First video ever uploaded was called Me at the Zoo and

showed Karim, one of the creators, standing in front of
elephants at the San Diego Zoo.

On October 9, 2006 Google bought YouTube for $1.65 billion.

In the 2008 election cycle, 7 of the 16 presidential candidates

announced their campaigns via YouTube.

On October 12, 2009 YouTube passed 1 billion videos a day.

Salar Kamangar is CEO of YouTube and also the Senior Vice

President of Video at Google.

HISTORY OF TAKEOVER

Google acquired Youtube for $1.65 billion in an all stock

transaction.

The purchase agreement between Google and YouTube came

after YouTube presented three agreements with media companies
in an attempt to escape the threat of copyright lawsuits.

In a statement, Google said YouTube will operate as an

independent unit of Google once the deal closes and will retain
the YouTube brand name.

None of the 67 workers of YouTube lost their jobs despite the

acquisition of the company.

Reasons Why Google Bought

Youtube

YouTube was ranked as the third most popular steaming

video site by comScore Media Metrix and #1 visited
online video site according to Hitwise.
Marker share of visits on the site

YouTube: 45.46%
MySpace Videos:
22.99%
Google Video:
10.25%
Yahoo! Video: 6.06%
MSN Video: 5.92%

Google made a $610 million mistake that year by not

acquiring MySpace when they had the chance. Instead News
Corps Fox Interactive bought MySpace for the bargain price
of $580 as MySpaces parent company was looking to sell fast
in order to avoid lawsuits.

Community: YouTube enjoys a much more active, enthusiastic

and loyal following than any video service which has been
launched by a search engine company. YouTube users are
using the interface to share, upload and comment on videos.
Not just watch them. That was the difference between a
normal users and a YouTube users. YouTube has created a
virtual community for its users.

Users like YouTube more than they do Google Video. They

stick around and watch more content on YouTube, while at
Google Video they dont seem to stick around quite as long.
Hitwise says that YouTubes average session time is double
that of Google Videos, at 18 minutes 33 seconds in the month
of September versus 9 minutes 9 seconds for Google Video.
YouTube is just plain sticky compared to Google Video.

Total Advertising Revenues Of Google

Total Advertising
Revenues Of Google
50
45
40
35
30
25
20
15
10
5
0

2006

2007

2008

2009

2010

2011

2012

THANK YOU