Youtube History – How Jawed Karim, Steve Chen and Chad Hurley Founded The Company
Youtube.com is the biggest video sharing site in the world, and it’s really huge! Did you know that at the beginning of the year 2012, more than 4 billion videos were streamed every single day? According to the popular site ranked – Alexa.com, Youtube.com is the third most popular site in the entire world… And it was started by three ordinary guys, working an ordinary job, who even didn’t have any money…
Jawed Karim, Steve Chen and Chad Hurley met each other at their full-time jobs in PayPal Inc. Once, they were on a party in San Francisco, after which they tried to share some videos taken there online. This turned out to be not an easy task, and this is how the idea for video sharing was born. The three decided to give it a try, and on 14ht of February 2005, the domain name Youtube.com was registered. Their first office was a traditional garage (what else could it be…) The first video was uploaded on April 23, it was called “Me At The Zoo, showing one of the founders – Karim in the Zoo of San Diego.
The First Video On Youtube.com :
Less than a month later, a working version of the site was launched online. The three men started looking for some financing to develop the idea further. They received it from Sequoia Capital – the company that invested in many other great online businesses like Google, Linked In and some others – at their start. I don’t know how these guy from the fund recognized many of the biggest diamonds online, but this was going to be their next home run. The starting capital they provided was $11,5 million.
Loaded heavily with money, Youtube started growing really fast. In the middle of 2006 (just a year after its debut online), the site had become the fastest growing online business on the Web. It was ranked as the 5th most popular site in the world by Alexa.com. People from all around the word were uploading thousands of videos reaching 65 000 every single day. The monthly visitors quickly grew to more than 20 million and the site already had over 100 million uploaded clips. Youtube quickly became the leader in its sector, the company had conquered a major part of the video sharing markets in many countries in the world. This huge expansion didn’t stay unnoticed by some of the online giants…
Google Buys Youtube
On the 9th of October, 2006, Google announced that they were buying Youtube for $1.65 billion. This was their biggest acquisition so far. The three young entrepreneurs, who founded the video site had made more than a billion in about a year. No other Internet company has ever grown so fast to over a billion of dollars.
By the middle of 2008, Youtube had conquered more than 37% of the global online video market. Its closest competitor had only around 4% market share. Despite its popularity, the site had never made any profit since its creation. Hosting and displaying such large amounts of videos turned out to be an expensive activity. No official figures have been released, but for 2009, the revenue of Youtube was $240 million and the expenses were around $740 million.