Google To Acquire YouTube For $1.65 Billion

Oct 9, 2006 | 1,747 views | by Navneet Kaushal
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Last week we reported the rumors and specualtions about Google acquiring YouTube. The rumors were backed by The Wall Street Journal report that said the discussions between Google and YouTube are still at a sensitive stage.

Google has now confirmed this with the press release that states Google will acquire the video sharing website for $1.65 billion all stock deal. This would be Google's most expensive purchase till date. The press release :

"Google Inc. (NASDAQ: GOOG) announced today that it has agreed to acquire YouTube, the consumer media company for people to watch and share original videos through a Web experience, for $1.65 billion in a stock-for-stock transaction. Following the acquisition, YouTube will operate independently to preserve its successful brand and passionate community. The acquisition combines one of the largest and fastest growing online video entertainment communities with Google's expertise in organizing information and creating new models for advertising on the Internet. The combined companies will focus on providing a better, more comprehensive experience for users interested in uploading, watching and sharing videos, and will offer new opportunities for professional content owners to distribute their work to reach a vast new audience.

"The YouTube team has built an exciting and powerful media platform that complements Google's mission to organize the world's information and make it universally accessible and useful," said Eric Schmidt, Chief Executive Officer of Google. "Our companies share similar values; we both always put our users first and are committed to innovating to improve their experience. Together, we are natural partners to offer a compelling media entertainment service to users, content owners and advertisers."

"Our community has played a vital role in changing the way that people consume media, creating a new clip culture. By joining forces with Google, we can benefit from its global reach and technology leadership to deliver a more comprehensive entertainment experience for our users and to create new opportunities for our partners," said Chad Hurley, CEO and Co-Founder of YouTube. "I'm confident that with this partnership we'll have the flexibility and
resources needed to pursue our goal of building the next-generation platform for serving media worldwide."

"The number of Google shares to be issued in the transaction will be determined based on the 30-day average closing price two trading days prior to the completion of the acquisition. Both companies have approved the transaction, which is subject to customary closing conditions and is expected to close in the fourth quarter of 2006.

John Battelle , Om Malik , Mark Cuban and Michael Arrington  present interesting thoughts about the deal.

4.thumbnail Google To Acquire YouTube For $1.65 Billion

Navneet Kaushal

Navneet Kaushal is the founder and CEO of PageTraffic, an SEO Agency in India with offices in Chicago, Mumbai and London. A leading search strategist, Navneet helps clients maintain an edge in search engines and the online media. Navneet's expertise has established PageTraffic as one of the most awarded and successful search marketing agencies.
4.thumbnail Google To Acquire YouTube For $1.65 Billion
4.thumbnail Google To Acquire YouTube For $1.65 Billion