Google To Acquire YouTube for $1.65 Billion

WebKnowHow
Tuesday, October 10, 2006; 02:12 AM

Google Inc. announced today that it has agreed to acquire online video sharing service YouTube for $1.65 billion in stock.  Following the acquisition, YouTube will operate independently to preserve its successful brand and passionate community.

Google said 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."

YouTube will retain its distinct brand identity, complementing Google's own video business.  YouTube will continue to be based in San Bruno, CA, and all YouTube employees will remain with the company.