YouTube's Acquisition by Alphabet Generates $11 Billion in Quarterly Ad Revenue
Alphabet Inc., formerly known as Google, acquired YouTube for $1.65 billion on October 9, 2006. The acquisition has since become one of the most profitable in corporate history. In its latest financial results, Alphabet reported that YouTube generated $11.06 billion in advertising revenue during Q2 2026 alone. Over the past four quarters (Q3 2025 to Q2 2026), YouTube's ad revenue totaled $42.58 billion. This figure does not include subscription-based income, which further boosts its contribution to Alphabet’s overall earnings. Analysts suggest that if spun off independently, YouTube could be valued at up to $1 trillion. The video platform has grown significantly since its launch in 2005 and now sees over 20 million videos uploaded daily. The acquisition's return on investment is staggering—$1 billion spent for a business generating nearly $9 billion per quarter in ad revenue.
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