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Instant Analysis: Alphabet's YouTube Acquires Startup BandPage

By Evan Niu, CFA – Feb 12, 2016 at 3:15PM

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YouTube scoops up a marketing platform for musicians.

What happened?
Alphabet's (GOOG -0.73%) (GOOGL -0.68%) YouTube has acquired BandPage, a small start-up that operates a marketing platform that helps musicians engage with their fans. The company also helps musicians build promotional sites and enables easy sharing as well. BandPage says that by joining YouTube it will be able to broaden its reach and create value for a larger number of musicians.

BandPage already has existing partnerships with a wide range of music streaming services and social networks. No financial details were disclosed.

Does it matter?
This deal makes sense on several levels. Music is a big part of YouTube Red, the company's new paid subscription service that costs $10 per month. It seems likely that BandPage will be integrated into YouTube Red in some way in the near future.

Alphabet has yet to make a meaningful dent in the broader market for music streaming services, and not for a lack of trying. The company has launched numerous services over the years, such as Google Play Music, but YouTube Music (which is significantly better if you subscribe to YouTube Red) is perhaps one of its most promising forays.

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Evan Niu, CFA has no position in any stocks mentioned. The Motley Fool owns shares of and recommends Alphabet (A shares) and Alphabet (C shares). Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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