Google buys YouTube for $1.6 billion

Posted on | October 10, 2006 | No Comments

The deal is closed.

For a mere $1.65 billion in stock and cash, Google bought Youtube. In comparision, Myspace sold to Newscorp for only $60 million.

Google video and Youtube will remain seperate, however this gives Google practicly all of the online video market.

Google Inc. said Monday it’s buying No. 1 Internet video sharing Web site YouTube Inc. for $1.65 billion in stock. The deal is regarded as a largely defensive one that leapfrogs Google into a leading role in a burgeoning Internet marketplace. Moreover, the Google/YouTube deal highlights how Google and other Internet companies are betting heavily on video to attract more customers and generate more advertising revenue.

Indeed, many analysts chiming in on the deal Monday suspect Google’s competitors will now seek to buy YouTube-wannabes in order to keep pace with their rival. On Monday, the boards of directors of both Google and YouTube approved the terms of the deal, which was announced after the market closed for the day

News Source: MarketWatch