Why Google Paid $1.65 Billion for YouTube in 2006
In 2006, YouTube was barely 18 months old. It had huge user traction but faced expensive video-storage and delivery costs, with no clear path to major profits. Google bought the platform for $1.65 billion, a price many people considered risky at the time. Google had been developing Google Video, a service focused on helping users find and watch licensed films, TV programmes, news clips and sports content. Its plan depended heavily on professional content and advertising, while YouTube was benefiting from the growing demand for user-uploaded videos. The acquisition became one of the most important deals in internet history. What early decisions helped YouTube stand out, and why did selling to Google make sense for its founders?
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