2-The Michigan Daily - Tuesday, October 10, 2006
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AP PHOTO
Google employees Erica Baker, left, and Raiford Sto-
rey work in the company's new office space yesterday
in New York.
Google to buy
YouTube for
$1.65 billion
Google CEO calls deal with
still-unprofitable site 'next step in
the evolution of the Internet'
SAN FRANCISCO (AP) - Internet search leader
Google is snapping up YouTube for $1.65 billion, brush-
ing aside copyrightconcerns to seize a starring role in the
online video revolution.
The all-stock deal announced yesterday unites one
of the Internet's marquee companies with one of its
rapidly rising stars. It came just a few hours after
YouTube unveiled three separate agreements with
media companies to counter the threat of copyright-
infringement lawsuits.j
The price makes YouTube Inc., a still-unprofitableI
startup, by far the most expensive purchase made
by Google during its eight-year history. Last year,
Google spent $130.5 million buying a total of 15
small companies.
Although some cynics have questioned YouTubd's
staying power, Google is betting that the popular video-
sharing site will provide it an increasingly lucrative mar-
keting hub as more viewers and advertisers migrate from
television to the Internet.
"This is the nextstep in the evolution of the Internet,"
Google Chief Executive Officer Eric Schmidt said dur-
ing a conference call yesterday.
YouTube will continue to retain its brand, its new head-
quarters in San Bruno and all 67 employees, including
co-founders Chad Hurley and Steve Chen. Meanwhile,
Google will continue to run a less popular video service
on its own site.
The deal is expected to close before the end of
the year.
"I'm confident that with this partnership we'll have
the flexibility and resources needed to pursue our goal of
building the next-generation platform for serving media
worldwide,' said Hurley, YouTube's 29-year-old CEO.
Schmidt thinks so highly of Hurley and Chen, 27,
that he compared them to Google's now 33-year-old co-
founders, Sergey Brin and Larry Page.
NEWS IN BRIEF
UNITED NATIONS
World lines up against North Korea
The world lined up against North Korea yesterday for staging a nuclear test
denounced even by key allies. President Bush called it "a threat to international
peace and security,' and the U.N. Security Council weighed severe sanctions to
punish the impoverished communist nation.
There was no talk of military action. But the Security Council quickly con-
demned North Korea's decision to flout a U.N. appeal to cancel the test after the
reclusive regime announced it had set off an underground atomic explosion.
The United States circulated a draft U.N. resolution late Monday that would
condemn North Korea's nuclear test and impose tough sanctions on the reclusive
communist nation for flagrantly disregarding the Security Council's appeal not
to detonate a device.
BAGHDAD
Iraqi vice president's brother assassinated
The brother of Iraq's Sunni Arab vice president was assassinated Monday by
gunmen who broke into his home, the third of the politician's four siblings to
be slain this year. Sunnis blamed Shiite militias and demanded a crackdown to
stop the capital's raging sectarian violence.
Iraqi authorities, meanwhile, arrested the head of the mess hall at a base
where up to 400 mainly Shiite policemen suffered food poisoning during a
Ramadan meal amid concerns it may have been the first known attempt by
insurgents to carry out a mass poisoning against police.
A military spokesman, Brig. Qassim al-Moussawi, said the poisoning likely
was intentional, though he did not rule out that spoiled food was used in the
meal as part of a scheme by contractors or officers to skim off money from
food funds.
JOPLIN, Mo.
No injuries from shot fired in middle school
Fascinated by the Columbine bloodbath, a 13-year-old boy in a dark green
trenchcoat and mask carried an assault rifle into his school yesterday, pointed it
at students and fired a shot into a ceiling before the weapon jammed, authorities
said. No one was hurt.
"Please don't make me do this," he was quoted as telling administrators before
police arrested him and thwarted what they called a "well thought-out plan" to
terrorize his school.
Police said a note in the student's backpack indicated he had planted an explo-
sive in the school, but no bombs were found.
Lt. Geoff Jones said the boy's motives were unclear. School officials said the
student had no major disciplinary problems.
BAGHDAD
Female prisoner: Guards buried detainees alive
Prison guards under Saddam Hussein used to bury detainees alive and watch
women as they bathed, occasionally shooting over their heads, a former female
prisoner testified yesterday in the genocide trial of the ex-president.
Speaking in Kurdish through an Arabic interpreter, the 31-year-old witness
recalled what she saw as a 13-year-old girl who was detained during Saddam's
offensive against the Kurds in the late 1980s.
She was one of the day's four Kurdish witnesses to testify about alleged atroci-
ties. The trial was later adjourned until today.
- Compiled from Daily wire reports
CORRECTIONS
Due to an editing error, a sentence in a viewpoint on page 4A of Thursday's paper
(MCRI and the price of admission) should have read: "Race and privilege are not
ahistorical"
Please report any error in the Daily to corrections@michigandaily.com.
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