Tech News Archive

Google Acquires YouTube for $1.65 Billion

October 9, 2006

Mountain View, CA - In what analysts are calling a landmark deal for Web 2.0, Google Inc. has agreed to acquire YouTube, the popular video-sharing website, for $1.65 billion in stock.

The acquisition represents Google's largest purchase to date and signals the company's strong commitment to user-generated content and social media. YouTube, founded in February 2005, has quickly become the web's leading video destination.

Key points of the deal:

• All-stock transaction valued at $1.65 billion
• YouTube to maintain independent brand and operations
• Current YouTube team to remain intact
• Integration with Google Video planned

Industry experts are divided on the valuation:

"This is either the smartest move in online media history or the peak of the Web 2.0 bubble." - Tech Analyst Weekly

YouTube's meteoric rise has been remarkable:

• Over 100 million videos viewed daily
• 65,000 new videos uploaded daily
• 20 million unique monthly visitors
• Preferred video platform for MySpace users