Throughout the entire year of 2006, Google was working a deal with YouTube to purchase the company. Finally in October 2006, YouTube took the deal Google offered. Google acquired YouTube for $1.65 billion in stock. YouTube was an innovative idea to allow consumers to express themselves through videos and share family videos with friends and family. The business began with free service to the consumers. As the website grew it became necessary for the creators of the company to seek advertisement campaigns in order to keep the company going.
Unfortunately even that did not help YouTube as much as the company owners had hoped. They were forced to seek a deal with Google in order to keep the company running. Google agreed to keep the 65 employees of the company in their jobs.
The deal with Google allows YouTube to remain online and grow. In fact since Google has taken over the company more videos and hits on those videos have been found. There is more advertisement on the page than before, but that is a small price to pay for having a place for consumers to place their videos. Google has also turned YouTube into a SEO market place for websites. Businesses are encouraged to create a video about their website business or products they sell to get their site out there for the public to find. Yahoo did bid on the video company, but Google has deeper pockets. Google has also had better innovative ideas in the last few years.