Google To Acquire YouTube for $1.65 Billion in Stock

Combination Will Create New Opportunities for Users and Content Owners Everywhere

MOUNTAIN VIEW, Calif., October 9, 2006 - Google Inc. (NASDAQ: GOOG) announced today that it has agreed to acquire YouTube, the consumer media company for people to watch and share original videos through a Web experience, for $1.65 billion in a stock-for-stock transaction. Following the acquisition, YouTube will operate independently to preserve its successful brand and passionate community.

The acquisition combines one of the largest and fastest growing online video entertainment communities with Google's expertise in organizing information and creating new models for advertising on the Internet. The combined companies will focus on providing a better, more comprehensive experience for users interested in uploading, watching and sharing videos, and will offer new opportunities for professional content owners to distribute their work to reach a vast new audience.

"The YouTube team has built an exciting and powerful media platform that complements Google's mission to organize the world's information and make it universally accessible and useful," said Eric Schmidt, Chief Executive Officer of Google. "Our companies share similar values; we both always put our users first and are committed to innovating to improve their experience. Together, we are natural partners to offer a compelling media entertainment service to users, content owners and advertisers."

"Our community has played a vital role in changing the way that people consume media, creating a new clip culture. By joining forces with Google, we can benefit from its global reach and technology leadership to deliver a more comprehensive entertainment experience for our users and to create new opportunities for our partners," said Chad Hurley, CEO and Co-Founder of YouTube. "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."

When the acquisition is complete, YouTube will retain its distinct brand identity, strengthening and complementing Google's own fast-growing video business. YouTube will continue to be based in San Bruno, CA, and all YouTube employees will remain with the company. With Google's technology, advertiser relationships and global reach, YouTube will continue to build on its success as one of the world's most popular services for video entertainment.

The number of Google shares to be issued in the transaction will be determined based on the 30-day average closing price two trading days prior to the completion of the acquisition. Both companies have approved the transaction, which is subject to customary closing conditions and is expected to close in the fourth quarter of 2006.

http://www.google.com/press/pressrel/google_youtube.html
http://www.theinquirer.net/default.aspx?article=34961
http://www.theregister.co.uk/2006/10/09/youtube_content_deals/
http://www.gizmodo.com/gadgets/deals/official-google-buys-youtube-206331.php
http://news.yahoo.com/s/ap/20061009/ap_on_bi_ge/google_youtube
http://en.wikinews.org/wiki/Google_purchases_YouTube_for_%241.65_billion

Buy a new PC this holiday season, get a free piece of paper

Microsoft Planning Windows Vista Upgrade Coupons

While Windows Vista expected to be released to manufacturers around October 25, retail PC pre-loaded with the new operating system won’t be available until the New Year. Microsoft and its partners are doing their best to get the new operating system into consumer hands this holiday season, even if it may come in the form of a piece of paper.

Microsoft is planning an upgrade program for those who purchase new PCs this holiday season. According to Information Week, the upgrade coupons will either be free or provide discounted pricing:

Customers who buy systems running Windows XP Home Edition can upgrade to Vista Home Basic Edition for a flat $49 fee and to the higher-end Windows Vista Home Premium Edition for a cost of $79.

The Windows Vista Technology Upgrade Program runs from Oct. 26, 2006, through March 15, 2007. Distributors are expected to have the new SKUs in house for system builders by Oct. 15.

Microsoft has not officially announced the coupon program, but has commented that it is currently working with its partners on a plan for such an offer.

Those who wish to preview a Windows Vista might want to clear their schedules for tomorrow’s RC2 release.

infos from DailyTech.com

Windows Vista To Take New Tough Line On Counterfeits

One analyst says Microsoft's new activation requirements will simply give legitimate users another reason not to upgrade to the new operating system.

Microsoft on Wednesday unveiled anti-piracy plans for Windows Vista that take tougher measures against users of counterfeit software, including limiting protection against spyware and incapacitating the PC. Not everyone welcomed the measures.

Windows Vista, which Microsoft has said will ship to business customers in November and to consumers in January 2007, will be the first operating system to include technologies that the Redmond, Wash. developer called "Software Protection Platform."

Under the new plan, counterfeit copies of Vista will not run the Aero interface, the OS's much-touted updated graphics look; will disable ReadyBoost, a feature that lets users add memory to systems by plugging in a USB flash drive; and will cripple Windows Defender, the anti-spyware protection tucked inside Vista. Previously, Microsoft had said it would strip some features, including Aero, from non-genuine Vista, although Defender was not among those mentioned.

Product activation, which debuted in 2001 with Windows XP, but is now part of Software Protection, will also be dramatically revamped. If a copy of Vista is not activated within 30 days, the operating system will only let the user run the default browser, and then only for an hour at a time before logging off. Legitimate copies that for some reason later fail the ongoing validation tests will have another 30 days to re-activate or purchase a new license before the PC slips into what Microsoft dubbed "reduced functionality," while copies detected as fake during the validation process will also be downgraded after 30 days. In addition, users of genuine Vista must reactivate within three days of "a major hardware replacement," said Microsoft, or face a crippled computer.

"This is actually a little more open in Vista [than in Windows XP]," said Cori Hartje, the director of Microsoft's Genuine Software Initiative. "Today, if you don't put in a key [within 30 days], you can't use the computer at all."

"But is she talking about validation or activation?" asked Joe Wilcox, analyst with JupiterResearch, who thinks Microsoft is making the wrong move at the wrong time and giving legitimate users another reason not to upgrade to the new OS.

In the Software Protection Platform, the two -- validation and activation -- which were separate entities in Windows XP, will be intertwined. "The Software Protection Platform brings together new anti-piracy innovations, counterfeit detection practices and tamper resistance into a complete platform that provides better software protection to programs that use it," Microsoft said in the white paper it released Wednesday (file in Word .doc format).

Microsoft will also extend activation and validation to enterprise volume license users for the first time with Vista, said Hartje, and require them with Windows Server "Longhorn," the server software follow-on. "One of the big holes we've had [in our anti-piracy efforts] is in our volume keys. It's a very open process, with the keys in clear text and easily stolen and misused," Hartje said.

Volume licensees will be required to manage keys and run activation using one of two services, KMS (Key Management Service) or MAK (Multiple Activation Key), with the former targeting shops with more than 25 machines that are always connected to the organization's network. MAK, on the other hand, is similar to the retail product activation keys, and lets one Windows PC connected to Microsoft to vouch for multiple machines.

"Why do you need two mechanisms?" asked Wilcox. "I think that [enterprise IT] management becomes much harder now. Microsoft's increasing the complexity of Vista, which decreases its appeal compared to XP."

"The process of setting up key management is really very straight-forward," countered Hartje.

The crackdown, she said, is necessary to protect users and Microsoft's OEMs. "We need this to protect consumers and partners. Consumers want to make sure they get what they've paid for."

Wilcox, however, sees it as a mistake. "Microsoft's making software potentially harder to use. I don't think it's a good move for them to make things hard when competitors are making things easier."

As examples, Wilcox cited the free or low-cost choices that users now have via the Web. "Web 2.0 is bringing change to how people consume technology, you have all this stuff that's available for low-cost or free. Contrast that to what Microsoft is doing on the desktop, putting potentially onerous safeguards on Vista.

"It's important for Microsoft to make Vista as appealing as possible. But how appealing is it when you go up to your new home and you have to undo five locks to get in the door and there are bars on all the windows?"

Wilcox also slammed Microsoft for scaling back Windows Defender's protection. "That means it's partly disabled. It means [bad] stuff can still get through. Either your priority is security, as Microsoft has repeatedly said, or it's not. There's no gray area."

On a counterfeit copy of Vista, Windows Defender will not be turned off, but only "severe, high-critical patches" will be provided, said Hartje. "Users will still see the other patches to show them what they're missing," she added.

In the end, said Hartje, Microsoft believes that the new measures of Software Protection are warranted, and won't impact legitimate users. "We don't expect that end users will see any of these issues," she said.

Wilcox sees it differently. "I don't believe it when Microsoft says this will benefit the customer. I can't imagine that the majority [of customers] are asking for this.

"Microsoft has two fierce competitors. Itself is the first, with 'good enough' [attitudes] and difficulty in convincing people to upgrade. The second is piracy.

"They may be going after one at the expense of the other."

infos from informationweek.com

Microsoft to shut out PCs using pirate Vista

Microsoft on Wednesday toughened its stance against software piracy as it disclosed that it will hobble PCs that it suspects of running pirated copies of its forthcoming Windows Vista operating system.

Users running unauthorised software will immediately lose some of the features of the new operating system and will eventually be able to use the machines only to browse the internet, the company said.

While the fresh attack on piracy was generally applauded by software analysts, some warned that it could lead to bad publicity if Microsoft mistakenly cracks down on genuine customers because of glitches in its own software validation process.

"There will be some issues with it", since even a very low error rate could affect a large number of PC users given the large numbers involved, said Michael Cherry, an analyst at Directions on Microsoft. However, he added that Microsoft appeared to have struck a good balance between taking a stronger line to protect its software and not antagonising its users.

Piracy has loomed as a larger problem for Microsoft as it has looked increasingly to emerging market countries for future growth. Piracy has also become big business as perpetrators have become more sophisticated. It has become a bigger threat to PC users as pirates have used the unauthorised software as a way to insert extra software, such as keystroke logging technology, on to PCs, said Mr Cherry.

Cori Hartje, director of Microsoft's anti-piracy initiative, said any adverse publicity that Microsoft attracted over an earlier software validation process tied to its Windows XP did not point to future problems with Vista, since the new anti-piracy system was built on an entirely new technology.

The latest attack on piracy in part reflects the growing problem from stolen activation keys, which are then given to unsuspecting customers who think they are buying genuine software.

Many of these keys were originally issued to large companies or other big customers. To combat this problem, Microsoft said users of suspect software would be given 30 days to get proper authorisation or face losing much of the functionality of their machines. It added that it would never fully disable any user's PC.

The attack on piracy will mean companies that buy volume licences from Microsoft will have to follow additional procedures when upgrading to Vista, said Ms Hartje. The company did not expect this to slow adoption of the software.