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The Making of YouTube: last day in the Sequoia office

At the time when YouTube was purchased by Google, the site was delivering more than 100 million video views every day with 65,000 new videos uploaded daily. The same press release from Google also announced that the acquisition combined one of the largest and fastest growing online video entertainment communities with Googles expertise in organizing information and creating new models for advertising on the Internet. 7 Thus, from the beginning, Googles intentions seemed clear: to develop YouTubes potential for attracting advertising revenues. Since YouTube is a subsidiary of Google Inc., it remains important to examine the parent corporation more carefully. Founded in 1998 by Stanford PhD students Larry Page and Sergey Brin, Google began as a Web crawler or search engine that traverses the Web in search of requested information.8 The company grew rapidly and is now headquartered in Silicon Valley with 60 offices in over 20 countries. Googles organization currently includes various divisions such as Google.com Search and Personalization; Communication, Collaboration and Communities; Downloadable Applications; Google GEO Maps, Earth and Local; Google Checkout (online shopping); and Google Mobile. The main google.com site has been expanded to include special features, such as Image Search, Book Search, and Google Scholar provides a simple way to do a broad search for relevant scholarly literature, including peer-reviewed papers, theses, books, abstracts and articles. Content in Google Scholar is taken from academic publishers, professional societies, preprint repositories, universities and other scholarly organizations. As is well known, the company has also developed a variety of other tools for users to create, share and communicate. Googles goal is to organize the worlds information and make it universally accessible and useful. To do this, the company relies on advertising to generate revenues. Their advertising strategies include content-targeted ads on google.com, as well as programs such as AdWords and AdSense, which help content owners to monetize their content by adding advertising to content, as well as other advertising strategies. Google is a public corporation meaning their stock is available to the public however, they have never paid dividends on common stock. In their latest report to the Securities and Exchange Commission, they stated: We currently intend to retain any future earnings and do not expect to pay any dividends in the foreseeable future. 9 Control lies firmly in the hand of the founders, executive offi cers and directors, who hold so-called Class A common stock. Class B common stock and other equity interests represent approximately 70 percent of the voting power of the outstanding capital stock. At the end of 2007 the companys two founders and the CEO owned almost , 90 percent of outstanding Class B common stock, representing more than two thirds of the voting power. Larry, Sergey and Eric [] have significant influence over management and affairs and over all matters requiring stockholder approval, including the election of directors and significant corporate transactions, such as a merger or other sale of our company or its assets, for the foreseeable future, the most recent 10-K report states. This concentrated control limits our stockholders ability to influence corporate matters and, as a result, we may take actions that our stockholders do not view as beneficial. 10 Googles 34 3 Industry