Google Acquires YouTube for $1.65 Billion

Google has finally announced its acquisition of popular video sharing site, YouTube, for $1.65 billion shares. Co-founders of YouTube, Chad Hurley and Steve Chen said they are keen on remaining independent and believe that Google's resources and engineering talent will help them in enhancing online video experience for Iinternet users.

According to Google, the combined companies will focus on providing a better, more comprehensive experience for users to upload, watch and share videos on the net. Google also says that the acquisition will offer new opportunities for professional content owners to distribute their work to reach a spectrum of audience.

Eric Schmidt, CEO of Google said, "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. 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, which currently delivers more than 100 million video views a day, has also signed deal with CBS Corporation to share content as well as revenue from advertising sponsorships of the CBS Videos on YouTube. The video sharing site has also signed up with Sony BMG Music Entertainment to make a wide variety of video content available to the YouTube Communities, from the music company’s library.

Published Date: Oct 10, 2006 11:00 AM | Updated Date: Oct 10, 2006 11:00 AM