Google and YouTube The two companies we have decided to research and discuss are Google and

600 WordsApr 23, 20193 Pages
Google and YouTube The two companies we have decided to research and discuss are Google and YouTube. We would like to look into the recent merger they had and what caused these two companies to come to this decision. YouTube is a website that enables users to upload videos of places they have been, things they have done, tutorials and etc. YouTube has greatly grown since 2005 and now has millions of videos uploaded each day of various things. Google is a popular search engine that is commonly used to access information from websites all over the world. Before YouTube was bought out by Google it was suffering from financial struggles. The company was a victim of its own success as consumer demands for their service would allow people to…show more content…
Many may wonder just how the $1.65 billion acquisition of YouTube by Google would work. Google’s large customer base of business and personal email subscribers, website hosting systems, large array of web applications and superior security systems was just the upgrade that YouTube needed. Likewise, YouTube possesses the world's largest amount of user created videos and public visuals content. Its global ability to share videos instantly and go viral 24/7 makes it the superior to Google prior to the merger. Both are web 2.0 system and the acquisition by Google was the financial saving grace that YouTube needed (Nichols & Thomson, 2010). On the other hand, in 2009 Google was listed to lose $470 million in the support needs of YouTube’s bandwidth and technology needs (Manjoo, 2009). What they really wanted was just that, the immense bandwidth and loyal customer base world-wide. This also gave Google its hosting enhancements to gain space for Google+ and other video capabilities giving it the more technological enhancement it needed without recreating the “wheel”. Financially, this gives YouTube the break of carrying the $700 million annual need for operation and gain more investment return that the small $240 million it made in 2009 in 1 of 10 paid ads. The Google+ is one

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