YouTube was acquired by Google for $1.65B in stock during its second year

Was Google's acquisition of YouTube a good deal?

Google's acquisition of YouTube was a game-changer, but was it a good deal in retrospect? Here, the hosts of the popular "Acquired" podcast explore whether the deal measures up to the mythology, starting with a memo from early investor Sequoia Capital.

YouTube began as a quirky site invented by former PayPal employees

In February 2005, YouTube was launched by Steve Chen, Chad Hurley, and Jawed Karim. Their idea was to build a platform to support the convenient sharing of videos online, a relatively novel idea in the days of cable TV and early social media.

YouTube's first-ever video was nothing special

YouTube has grown into a cultural force in its two-plus decades of existence. Its beginnings, though, were modest, especially its first video: a 19-second clip about a visit to the San Diego Zoo. This brief resource explains the origins and longtail impact of "Me at the zoo," a simple video uploaded by Jawed Karim on April 23, 2005.

YouTube evolved into a film distributor

YouTube has evolved from a random clearinghouse of user-uploaded video content to a global media powerhouse. One example is the use of YouTube to distribute "Milk & Serial," a slasher film made for $800 that eventually racked up hundreds of thousands of views.

Google's early focus on simplicity and user experience drove its future successes

Google Search revolutionized information retrieval in 1998, but additional web-based products, including Gmail, Maps, Docs, and YouTube reinforced the company's core ad business while allowing it to aggregate the world's information. Forming Alphabet protected this business from riskier moonshot projects.

Targeted ads accounted for 80% of Google's parent company's total revenue in 2020

Ads in Google Search, YouTube, and other products brought in $147B for Alphabet, with ad click costs ranging from $7 to several hundred dollars. YouTube's ad revenue alone jumped 49% year-over-year in one quarter.

YouTube brought endless content—and endless culture wars

How did YouTube grow from a startup in 2005, to a media powerhouse with more than 2.5 billion monthly logged-in users who watch more than 1 billion hours of video every day? That’s what this podcast interview with Bloomberg tech reporter Mark Bergen on NPR’s Fresh Air explores.

7 angel investors funded Google in its early days

Entrepreneur Shaan Puri shares how seven strangers acted as Google’s earliest angel investors. The first gave Google $100K without even putting his equity agreement in writing. The investors on “Shark Tank” use their personal funds to support startups, but they’re often more predatory about terms than typical angels.

Google had a quirky, auction-based IPO

In its sixth year, Google's shareholders reached a size where regulators would require the company to publicly report its financials. This prompted the company to go public through an unconventional style: the Dutch auction. The company auctioned its shares starting from a high price and dropping to a lower level.

Yahoo acquired Paul Graham's former startup Viaweb in 1998

Viaweb was the web app tech startup that Paul Graham, Robert Morris, and Trevor Blackwell cofounded before they started Y Combinator. The company sold for $49M and Viaweb was rebranded as the Yahoo Store.

Google Searches have increased from 14 billion to 5.9 trillion from 1999 to 2025

As of 2025, an estimated 5.01 billion people use Google Search worldwide, with over 20% of activity conducted via voice search. "YouTube" is the most searched term, with an average monthly search volume of over 375 million.

YouTube plans on embracing AI-powered features

YouTube CEO Neal Mohan lays out a series of priorities and predictions for how the online video giant will continue to evolve. Mohan says the company wants AI to play a bigger role—in addition to figuring out how YouTube can evolve and improve the experience of streaming its content.

YouTube no longer provides data to Billboard

Billboard began using data from YouTube in 2013, tracking the platform’s most popular songs as it became a hub for listeners. That relationship ended in January 2026, when YouTube announced it was ending the partnership, citing a disagreement over how Billboard weighted premium users more heavily than free users.

One Facebook investor turned $500K into $1B

Peter Thiel was Facebook's first big investor. In 2004, he invested $500K into the social network, long before the company owned Instagram or renamed itself "Meta." In 2012, when he sold off most of his stake, he turned that initial $500K investment into more than $1B in cash.

Many original dot-com company founders were bought out early on

The people who bought the original domains for dot-com companies and had the ideas to start businesses were often bought out by investors before becoming well-known companies. Both Pets.com and Broadcast.com were acquired early on.

A guide to YouTube TV

In addition to giving users the ability to watch videos for free, supported by ads, YouTube also offers premium subscription products that include an ad-free version of YouTube—as well as YouTube TV, which lets viewers stream live TV channels over the internet. This CNET overview of YouTube TV explains what viewers get with the service, including which channels and networks, as well as a cloud DVR and the ability to cancel anytime.

In 2023, venture capital firms invested $170B in over 15,000 US companies

That's a significant drop from 2022’s $242B, reflecting market uncertainty but continuing VC’s role in scaling transformative ideas. Rooted in early risk-sharing models, venture capital took off with firms like ARDC in 1946, later evolving into today’s influential players like Sequoia Capital and Andreessen Horowitz.

Children are now three times more likely to say they want to be a YouTuber when they grow up than an astronaut, with some even attending 'YouTube camps' that teach kids how to create content for the platform.

A timeline and visuals on TikTok's rapid growth

The app that would become TikTok is known as Douyin in China, and this article recounts its history, acquisition of rival Musical.ly, and rebranding ahead of its lightning growth. One visualization shows how quickly TikTok reached 1B users.

See Don Valentine's original 1977 memo for Sequoia's investment into Apple Computer

In honor of Apple's 50-year anniversary, Sequoia Capital recently posted a tweet on X (the social media platform formerly known as Twitter) with a photo of the original 1977 memo for Sequoia's investment in Apple.

Psy's 'Gangam Style' was the first music video to reach 1 billion views

Psy's "Gangnam Style" was the first music video to reach 1 billion views on YouTube. The song and video catalyzed the "Korean wave," bringing K-pop into the global mainstream. As of July 2025, it had over 5 billion views on the platform.

From 1986 to 2024, Microsoft has acquired at least 277 companies

Some of these acquisitions helped the company expand into enterprise software and services, including Visio, which integrated diagramming software into Microsoft Office, and Hotmail, which provided an email platform to customers. Recent acquisitions of Mojang and Activision Blizzard underscore an increasing emphasis on the video game industry.

Listen to a 2026 interview where Bumble's CEO said its stock is down 96% since its IPO 'for no reason'

CEO and Founder Whitney Wolfe Herd said the company is still performing very well. She added that the business makes $1B per year and referred to it as profitable. She went on to say "who knows what people trade stock on?" and that she believes the stock market has written Bumble off as if it were debt

Peloton raised more than $300K in 30 days during its Kickstarter campaign

Peloton ran a Kickstarter campaign in 2013, hoping to raise $250K and ended the campaign with $307K. Peloton sold its first bikes during that campaign for $1.5K. Foley later said that most of the bike purchases came from investors, not necessarily new customers.

A private equity firm led the leveraged buyout of Toys 'R' Us before the company's bankruptcy

After being acquired by two private equity firms and a real estate company for more than $6B in 2005, Toys 'R' Us filed for bankruptcy in 2017. Many point to the $400M a year the company had to pay to service its debt, as well as increased competition from online retailers like Amazon, for draining its profits and ultimately dragging it under.

What a $1K investment in P&G stock 20 years ago would be worth today

If someone put $1K into P&G stock 20 years ago, it would be worth about $5.2K in 2025, making its annualized return about 8.6%. For context, the S&P 500 has had an annualized return of 10.7% over the same time period.

Venture capital is a form of funding provided to early-stage companies with high growth potential, typically in exchange for an equity (or ownership) stake

The name 'Silicon Valley' arose from the founding of Shockley Semiconductor Laboratory in Fairchild Semiconductor in 1956-57, founded near Stanford University in Palo Alto

SpaceX's S-1 or 'prospectus' revealed many previously unknown details about the company, including its unprofitability despite doing $18.7B in revenue in 2025, exactly how many voting shares Elon Musk will have in the company (roughly 85%), and more.

The most expensive ad of all time was for Chanel No. 5 perfume and cost roughly $33M to produce in 2004—about $57M in today's dollars.

Netflix profits when you're not watching, and its movies are designed that way—read a detail-rich critical essay exposing lesser-known Netflix takes

How Amazon operates a 'flywheel' business model, a self-reinforcing cycle that drives continuous growth

In 2019, a laptop loaded with six of the worst malware in history and described as 'an exhibit of historical weaponry' sold for $1.3M.

Fast-casual restaurant Chili's is experiencing a resurgence, with its parent company recently reporting a nearly 32% increase in sales, thanks to passionate Gen Z fans on TikTok.

While the first exchange-traded fund (a 'basket' of different assets that can be bought and sold on a stock exchange) in the US only launched in 1993, the global ETF market has grown to more than $10T in the short time since.

Roughly 43 million US borrowers owe roughly $1.7T in student debt, the second-largest source of consumer debt behind mortgages.

Warren Buffett's former professor Benjamin Graham is known as the 'father of value investing,' a strategy in which investors seek to buy stocks trading below their intrinsic worth.

Budweiser stores yeast derived from the original 1800s strain in a secret bunker, which only the Head of Yeast Management can access—not even the CEO

Sony set the standard for cylinder-shaped batteries when it repurposed manufacturing equipment used to make rolls of magnetic recording tape.

About 2,000 US babies are born annually without some portion of their limbs, potentially leading to a lifetime of pricey prosthetics.

The animatronic shark from Steven Spielberg's 'Jaws,' the first modern blockbuster, was a complex underwater apparatus called 'Bruce.'

Sears sold DIY house kits starting at $600 in its famous catalog from 1908 through the 1940s, resulting in roughly 10,000 'Sears and Roebuck houses' being built.

Up to a million Girl Scouts sell about 200 million cookie boxes every spring, generating $800 million, largely because refusing a child is frowned upon

A researcher recently discovered an interview from 1967 between groundbreaking journalist Joan Didion and the Grateful Dead, years before the band became an institution.

The Beatles' US label rejected the band's first two singles, 'Please Please Me' and 'From Me to You,' with one executive calling the band 'dead in the water.'

Stanford built a Google Maps for the Roman Empire, revealing how much it cost to travel in the ancient world

The first image of a black hole was captured by creating an Earth-sized virtual observatory from a network of eight radio telescopes.

Search a massive database of over 4 decades of clues from the TV quiz show 'Jeopardy!'

Domino's Pizza's 30-minute delivery guarantee was responsible for the chain's 1980s surge, but it was discontinued after the company was found liable for delivery driver accidents.

The 2026 Ebola outbreak in the DRC is spurring new Ebola vaccine development for the Bundibugyo species.