In 2006, Google made one of the most important business deals in internet history when it bought YouTube for $1.65 billion. At the time, YouTube was a young website where people could upload and watch videos. It had only been created in 2005 by three former PayPal employees—Chad Hurley, Steve Chen, and Jawed Karim. They wanted to build a simple way for people to share videos online, and the site quickly became popular. Even though it was new, YouTube was already attracting millions of users who enjoyed watching and sharing videos.
Google saw the potential in YouTube and decided to buy it. On October 9, 2006, Google announced that it would purchase YouTube for $1.65 billion in stock. Many people thought this was a big risk because YouTube was not making much money at the time. However, Google believed that video-sharing would become more important in the future. By buying YouTube, Google wanted to take control of the growing online video market. This decision turned out to be one of the smartest moves in business history.
After the purchase, YouTube continued to grow. Google improved the platform by adding better technology, making it easier for people to upload videos, and creating ways for YouTube to make money. Over the years, YouTube introduced advertising, which became its main source of revenue. Companies could now pay to show ads before or during videos, and content creators could earn money from their videos. This helped YouTube grow into a major business.
Today, YouTube is one of the most valuable companies in the world. It is now worth more than $455 billion, a huge increase from the $1.65 billion that Google paid in 2006. YouTube has become a key part of the internet, with billions of users watching videos every day. It is used for entertainment, education, business, and even politics. Many people have built careers on YouTube, including musicians, comedians, teachers, and influencers.
The success of YouTube shows how powerful the internet has become. It also proves that Google made the right decision in 2006. What seemed like a risky purchase at the time turned into one of the best investments ever made. Today, YouTube continues to shape the way people create and share videos around the world.
