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Google and Youtube Merger

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Submitted By Bama1
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Google and YouTube

HRM 587 (Managing Organizational Change)

Google and YouTube

The two companies we have decided to research and discuss are Google and YouTube. We would like to look into the recent merger they had and what caused these two companies to come to this decision. YouTube is a website that enables users to upload videos of places they have been, things they have done, tutorials and etc. YouTube has greatly grown since 2005 and now has millions of videos uploaded each day of various things. Google is a popular search engine that is commonly used to access information from websites all over the world.

Before YouTube was bought out by Google it was suffering from financial struggles. The company was a victim of its own success as consumer demands for their service would allow people to upload videos to YouTube which continued to add capacity (Kafka, 2010). Consequently, the company could not turn a profit. In fact, consumer demand for YouTube remains strong today as there are hundreds of hours of video uploaded to YouTube every minute and there are now hundreds of YouTube channels that can be subscribed to (YouTube Company Information, n.d.). Google, on the other hand, was in good financial shape pre-merger (Google Investor Relations, n.d.). It had plenty of money to purchase promising companies, especially ones that would expand Google’s advertising capabilities and revenues. The bottom line is that both YouTube and Google appeared to be a perfect fit for one another with the impetus for change coming in different ways. YouTube needed the financial power of Google and Google needed the unique ways that YouTube offered to expand their advertising base.

It is a known fact that Google, by its own admission, has made it clear that it wants to increase advertising by placing ads on television and radio, as well as in print.

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