Interesting deal and for alot of money
Quote:
In a blockbuster move, online giant Google said today it had agreed to buy popular video sharing site YouTube for $1.65 billion in stock.
The purchase matches up Google’s strength in the search engine market with YouTube’s dominant hold in online video.
Over 100 million videos clips are viewed through YouTube on an average day.
Both Google and YouTube are primarily run on advertising revenues. Buying YouTube gives Google a large footprint in the growing business of online video content.
In a statement, Google Chief Executive Eric Schmidt called the two companies “natural partners.”
“Our community has played a vital role in changing the way that people consume media, creating a new clip culture,” said Chad Hurley, chief executive of YouTube. “By joining forces with Google, we can benefit from its global reach and technology leadership to deliver a more comprehensive entertainment experience.”
YouTube also brings partnerships with big name brands like NBC and Cingular Wireless. Earlier today YouTube announced a partnership with Universal Music Group and CBS.
YouTube will continue to operate independently after the deal is completed, Google said.
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