Google Bought YouTube for $1.65 Billion in 2006. The Streaming Platform Is Now the Main Driver of a Roughly $93 Billion Business at Alphabet.

Alphabet's acquisition of YouTube for $1.65 billion in 2006 continues to serve as one of the most successful acquisitions in technology history, solidifying its place as a cornerstone of Google's long-term growth. Today, YouTube maintains a dominant leadership position across the media landscape, capturing 13.8% of total streaming viewing hours according to Nielsen data, well ahead of Netflix at 7.9%. Financially, the platform is demonstrating resilient expansion across both advertising and subscription divisions. In the first half of the year, YouTube advertising revenue reached nearly $21 billion, marking a 12% year-over-year increase. Meanwhile, the broader Google subscriptions, platforms, and devices segment—primarily driven by YouTube TV, YouTube Music, and Premium—generated $25.3 billion, representing a 17% year-over-year rise and pacing toward an annualized $93 billion run rate. With expanding living room viewership and over 1.7 billion unique viewers tuning into major events like the World Cup, YouTube's diversified revenue model continues to bolster Alphabet's competitive moat against traditional media and streaming rivals, supporting a positive long-term market outlook.