Saturday, February 10, 2007

YouTube Story

Chad Hurley and Steve Chen,the YouTube founders became millionaires overnight after Google bought the video sharing site last November.

Chen and met Hurley in 1999, while working at PayPal, three years before the online financial transaction service was bought by Internet auction site eBay for 1.5 billion dollars.Hurley left PayPal to work for himself as a consultant. Chen remained at PayPal and worked on the company's expansion into China.

The friends first discussed wanting an easy way to share home videos online while at a dinner with other former PayPal employees in February 2005.
Hurley, Chen and former PayPal colleague Jawed Karim launched YouTube in April 2005.

Google bought YouTube in November in a 1.65-billion-dollar stock deal that marked the search engine's most expensive acquisition and crowned the young start-up an enviable success story.
YouTube co-founder Chad Hurley received 694,087 shares, valued at nearly 328 million dollars on Thursday. Hurley got another 41,242 shares of Google stock, valued at 19.5 million dollars, which were placed in a trust fund.

YouTube co-founder Steve Chen received 625,366 shares valued at 295.5 million dollars and another 68,721 shares worth 32.47 million dollars that were placed in a trust fund, according to the US Securities and Exchange Commission filing.
Google's third founder, Jawed Karim, received 137,443 shares of Google stock with a market value of 64.9 million dollars.

Sequoia Capital, which financed YouTube to the tune of 11.5 million dollars, got a payoff of 941,027 shares worth 444.64 million dollars, the SEC filing indicated.

Google, the supreme search engine,indexes videos from the top video sharing site,YouTube.Thus they enhanced each others efficiency.

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