Let’s unfold these questions about a platform that redefined how we share and consume content in this digital age. Through its acquisition by Google and the subsequent support from Alphabet Inc. YouTube has continued to thrive and maintain its independence, evolving into a platform where anyone can share their creativity and connect with others across the globe. Google’s acquisition has positively affected YouTube, providing the platform with the resources, expertise, and support necessary to accelerate its growth and improve its functionality.
In the early days, YouTube was more about creation and community than fame or money. More than 15 early creators told Business Insider about coming to YouTube before it could be a career, storming the platform with a sheer desire to express themselves. They formed a community made up of people who were used to being outsiders in their offline lives who bonded over a passion for creativity. The first public offering (IPO) of Google happened on August 19, 2004. The company priced 19,605,052 shares at $85 each during its initial public offering (IPO).
YouTube has become an indispensable part of our lives, providing a platform for sharing and exploring videos of all kinds and connecting billions of people across the globe. And the “majority” of that revenue, per Alphabet CFO Ruth Porat, gets paid out to creators. Whether or not YouTube is a financially successful organization, it’s certainly an important entity. Many people in the television industry believe that in the future, televisions and computers will merge together. And I talked to some of the early YouTubers who had worked in that tech space, and they were like, well, we discovered when we were unboxing the videos, people actually wanted to watch them. They wanted to experience what it’s like to take that new shiny product outside of a box.
YouTube and Google are owned by Alphabet Inc., which is the parent company of various subsidiaries, including Google, YouTube, and several other technology-related ventures. They also played significant roles in the formation of Alphabet Inc., which was established in 2015 as part of a corporate restructuring. Alphabet is a publicly traded difference between client side and server side javascript company, so its shares are owned by investors all over the world. However, the largest shareholder is Larry Page, one of Google’s co-founders. When talking about the ownership of Google and YouTube together, the answer is- both the companies, YouTube and Google are owned by Alphabet Inc., a holding company that was created in 2015.
That said, a revenue miss of this magnitude for Alphabet means investors were not pleased, and Alphabet stock is now down more than 4 percent in after-hours trading. Even under the new ownership of a tech giant, Chen and Hurley had control. They shared an office, from which they delegated tasks to newfound hoards of employees that came from Google. As long as they could deliver the promised traffic demonstrating YouTube’s monumental growth, they had say over the decision-making, Chen said. In the video, a clearly giddy Hurley and Chen, dressed in blazers, announced the sale and thanked the community of creators. “I think what made it even more poignant for many of us was that the competition for YouTube at the time was Google Video,” Byrne said.
Discovery have also created and expanded their corporate YouTube channels to advertise to a greater audience. YouTube has progressed from a small-scale business venture to an established company achieving global breakthroughs. It currently ranks as the second most popular social media platform, allowing users to watch and upload videos on desktop and mobile devices. YouTube has grown beyond its main website since being acquired by Google, adding mobile applications, network television, and cross-platform connectivity.
YouTube quickly became a popular destination for digital content consumption. That number comes, in a slightly roundabout way, from Alphabet’s earnings report on Tuesday. That’s because, for the first time, the holding company that owns YouTube released bare-bones financial information about the world’s largest video site, which it said generated $15 billion in ad revenue last year. That – I think that the idea was that there was – this is a big platform. We have drawn lines in the sand in certain places as far as what’s acceptable legally and what’s acceptable according to our community standards.
Alphabet is the parent company of many other technology companies, including Google Cloud, Calico, CapitalG, GV, Verily, Waymo, and X. We spend a lot of time researching and writing our articles and strive to provide accurate, up-to-date content. However, our research is meant to aid your own, and we are not acting as licensed professionals.
They had taken a walk around the block in San Mateo and made a decision. YouTube was successful and growing rapidly, but it also had to allocate resources for equipment, broadband connections, and even potential litigation due to copyright issues from the majority of its uploaded videos. To manage the growing costs and risks, YouTube went in search of a buyer. Alphabet, Google’s parent company, owns several businesses that contribute to its overall success. The company’s acquisitions have been so successful that it has become too influential in its chosen market segments, making it the target of antitrust accusations—some of which were decided in favor of Google’s accusers.
But back in May 2005, YouTube’s cofounders had only an inkling of what the site would become. Read below for the full, inside story of YouTube, the company that would shatter the expectations of what “entertainment” could mean and who could be a part of it. USA TODAY is exploring the questions you and others ask every day.
By early October, YouTube was close to signing a deal — but not with Google. YouTube had a meeting on the books with Yahoo for a full day of due diligence, and the plan was to sign a term sheet for an acquisition at the end of the day, according to Yu. The way Yu tells it, both Chen and Hurley were frustrated by the amount of meetings the company was having about copyright infringement, meetings that were becoming increasingly hostile. They told Yu that they had started YouTube to make a good product.
Google now has a market valuation of almost $23 billion after selling $1.67 billion. The stock saw great success following the IPO, with shares reaching $350 in their initial offering on October 31, 2007, mostly as a result of profitable and well-performing online advertising sales. Time Magazine’s ‘Time Person Of The Year’ for 2006 was a YouTube screen with a giant mirror.
Jawed Karim, one of YouTube’s co-founders, uploaded the first video to the platform, making him the first-ever YouTuber. As a long-time Google executive, responsible for Google’s early advertising ecosystem, Wojcicki has played a key role in shaping YouTube’s advertising and monetization strategies, further cementing the platform’s financial stability and success. YouTube was created by three former PayPal employees, Chad Hurley, Steve Chen, and Jawed Karim.
The idea originated in Chad Hurley’s garage in Menlo Park, California. Alphabet is constantly looking for novel technologies that can enrich its portfolio of businesses. Acquiring smaller companies often eliminates emerging rivals, thus reducing competition for Alphabet. This is one reason Alphabet has faced several antitrust lawsuits filed by the U.S. Alphabet has become one of the world’s largest technology conglomerates, with a market capitalization of $1.78 trillion as of Feb. 3, 2024. The company posted a net income of $73.80 billion on revenue of $307.39 billion for 2023.
Meanwhile, Alphabet, YouTube’s parent company, is projected at an average valuation of $1.4 trillion, with YouTube representing 15% of Alphabet’s trading valuation. YouTube earned an estimated US$35 billion in annual revenue until the first half of 2022, https://forexhero.info/ with most of its earnings coming from Ad Sales (85%). The remaining 15% of YouTube’s revenue is generated from user subscriptions on YouTube Premium. YouTube was created in 2004 by three former PayPal employees, Steve Chen, Chad Hurley, and Jawed Karim.
