1. How much does YouTube cost?
Price Tag: USD $1.65 billion
Equity:
3,217,560 shares of Google Class A Common Stock,
442,210 shares of restricted stock and warrants
495 million from the proceeds went to Sequoia Capital

2. Integration Plans Integrating advertising into YouTube videos.
Eliminate hosting aspect of Google video, making it simply a search tool.

3. Why buy YouTube?
By only giving up a small percentage of their shares, Google can reap the benefits of the acquisition without taking revenue loss.
Both Google and YouTube’s business model revolves around “fair use” of third party content. Given Google’s size and experience, it is more able to handle any copyright lawsuits that YouTube might land itself in. Setting a precedent will make things easier for Google if and when it gets sue.
YouTube can be used as a test bed for Google to fine tune their ad campaigns in the online video industry.

4. Pre-merger YouTube Criticisms
No monetization policies
Precarious situation because of the legal and copyright issues
Competitors
No substantial or sustainable advantages in video sharing industry

5. Google-YouTube Synergy
What could Google do for You Tube?
Video adverts in YouTube videos
Selling premium video
Licensing content
What could You Tube do for Google?
Google can gain a foothold in the online video industry, given YouTube’s existing user base and community.
YouTube contains a significant amount of online videos, which Google will inherit into its empire of media content.

6. Risks and Mitigations Google:
Inherits costly litigation risks associated with copyrighted content on YouTube.
Overvaluation of YouTube’s profitability.
Mitigation: Indemnification clause (9.2c) in contract
YouTube:
Users (content providers) disappointed with YouTube’s direction post-merger.
Mitigation: “Following the acquisition, YouTube will operate independently to preserve its successful brand and passionate community.” (Google Press Release, Oct )