Steve Chen , Chad Hurley , and Jawed Karim founded YouTube right on Valentine's Day in 2005 . Chen and Karim is a graduate of the Department of Computer Science, University of Illinois at Urbana Champaign , while Hurley of Indiana University of Pennsylvania . Friendship was more viscous three friends after they work for PayPal , the online payment service site , which was later acquired by eBay in 2002 for U.S. $ 1.5 billion . PayPal logo is the work of Chad Hurley , and all three took part launching the site .Post - acquisition bonus money into capital the three men agreed that when they set up their own businesses . A situation then encourage them to set up a streaming video -based site earlier . There are two versions of the story that the reason for the establishment of YouTube . First , the difficulty of getting one of those videos Janet Jackson incident and Justin Timberlake in the " Super Bowl " on February 1, 2004 .
Second , Jawed Karim distrust about dinner at the apartment of Steve Chen . To prove that the event really took place , Chen and Chad Hurley tried to send a video of the event to Jawed . However, they have difficulty in uploading files earlier , especially in technical contexts . They should change the video file to a specific format and must be a member to raise .
They reverse all of that when setting up YouTube . The user does not need to be a member to post videos . They also did not set a specific technical requirements for the file that will be raised the uploader . Just broadcast yourself ! When established , the number of sites with the kind of ease that only a handful . Because of this , then YouTube is packed with a menu that is easy to learn format , the upload is not complicated , and the speed of the video watched later .
In May 2005 , YouTube introduced a beta version of the site and was officially introduced to the public in November 2005 . In a time not too long for the size of a start-up site , YouTube is growing rapidly . As of July 2006 , YouTube receives 65,000 new videos and watched 100 million times every day .
Stumbled on Yahoo!
At the time of its inception , the three founders of YouTube administer the site of an office which is located on top of a pizza restaurant and Japanese food in San Mateo , California . Aroma Cuisine of the two restaurants that are part of everyday life at the beginning of the managers of YouTube .
When the bonus money from PayPal no longer be relied upon , into the back of the credit card . But this only makes financial condition Chen , Hudley , and Jawid increasingly deflated . As more people visit the site , too, increased operational costs , for example, to rent a server .
Before Youtube increased traffic , they perform a variety of ways for people see or visit this site . Including giving money U.S. $ 100 for the 10 girls who upload videos they star . The ad spread the founders of YouTube through Craigslist site , but no one responded .
Wired Magazine also contacted the three men , but did not react . Later , YouTube became one of the topics in the article to thousands of publications around the world . At the beginning of the popularity of this site , every day there are 3,000 media reported about YouTube and the resulting phenomena .
Actually they can earn money when opening the space for advertisers . But the three men agreed that advertising is only going to lead to people's reluctance to return to the site . Moreover , advertisers want their advertisement can continue running without shut down , even if only in a matter of seconds .
Therefore, the three founders of YouTube was then glanced at the other party to bear the burden . Then a finance company called Sequoia Capital towed . The company injected a total of U.S. $ 11.5 million during the period November 2005 to April 2006.
Forward Together Google
A year after its inception , the Internet giant bought YouTube , Google , on 13 November 2006 at a price of U.S. $ 1.65 billion . Microsoft , Yahoo , and News Corp. actually also interested in this site . However, the YouTube founders prefer Google , mainly because the proposed terms indepensi got the green light from investors . Steve Chen , Chad Hurley , and Jawid Karem requested that YouTube and 60 employees separated from day-to- day operations of Google.
Google invested was among the most substantial in the context of the purchase of a new Internet company . Total investment was based on an assessment of the ownership of the founders of YouTube and related parties . Details purchasing it opened on February 7, 2007 . We appreciate Sequoia Capital stock of U.S. $ 442 million , Chad Hurley U.S. $ 345 million , Steve Chen U.S. $ 326 million , Artis Capital Management of U.S. $ 83 million , and Jawed Karim U.S. $ 64 million .
Google's investment was also considered to be too large because YouTube has not shown signs of making a profit . In fact, the company recently purchased it becomes a financial burden for the additional Google but did not decide to make its financial condition red . New in 2010 YouTube shows a blue report card .
Google bringing in profits in the popularity of Four years after its founding , as reported by research firm ComScore , YouTube became the site of the largest online video provider in the United States and controls 43 % market share . As of May 2010 , according to ComScore , as many as 14 billion people watched the video . Data released showed YouTube , every minute , 35 hours of video uploaded to the duration of the site and three -quarters are from outside the United States . Alexa puts YouTube in third place behind Google and Facebook as the most visited website .
