Who owns YouTube?
YouTube is owned by Google, which acquired the platform in November 2006 for $1.65 billion. Google is a subsidiary of Alphabet (GOOG +0.81%) (GOOGL +0.81%), a publicly traded company established in 2015 as the result of a major corporate restructuring to streamline and optimize Google's operations.
YouTube's origins are traced back to a trio of individuals who worked at PayPal (PYPL +0.62%): Steve Chen, Chad Hurley, and Jawed Karim. Inspired by an unfruitful search for a video clip, the trio had a eureka moment that inspired them to construct the foundation of what would become YouTube.
YouTube and Alphabet's corporate structure
When YouTube was originally acquired in 2006, Google itself was a publicly traded company under the same ticker Alphabet uses today for its Class A shares: GOOGL. As Google continued to expand and diversify its business away from just Google Search, it underwent a major corporate restructuring.
Alphabet became the publicly listed parent company that now owns Google and several other notable subsidiaries, including DeepMind, Waymo, and Calico. Alphabet is publicly traded and has three classes of shares:
- Class A (GOOGL): Class A shares are publicly traded and come with voting rights.
- Class B: Class B shares are not publicly traded and are held by founders and insiders. They also have 10 times the voting power of Class A shares.
- Class C (GOOG): Class C shares are also publicly traded but do not have any voting rights.
Both Class A and Class C shares are publicly available and traded on stock exchanges, allowing investors to purchase them. However, because Class C shares lack voting rights, they might trade at a slight discount compared to Class A shares, though this price difference is generally quite small.