Well-known for it’s online advertising programs, Google has captured a web giant and added it to its collection. Announced today, after being reported last Friday, the search engine giant paid $1.65 billion for YouTube.
While technically a part of Google, YouTube will remain largely independent with some autonomy. According to an article on CNNMoney.com, there are some critics that have criticized Google for relying too much on its online advertising tied to keyword searches. However, now they can expand their search to include those videos on YouTube and on Google Video.
Somewhat surprisingly is the additional news coming from Google that the purchase of YouTube would not be the last purchase relating to online video as Google CEO Eric Schmidt was quoted as saying “… the YouTube deal would be one of ‘many investments’ that Google planned to make...” This would definitely help to make YouTube even more competitive with MySpace, which happens to rank second in the online video market. By buying up other online video websites, YouTube would definitely gain from this purchase.