Google Youtube

The rumors of YouTube acquisition are finally over, and the winner is Google which really isn’t that big of a surprise. Today Google bought the King of online Video - YouTube for $1.65 Billion in a pure stock transaction throgh an official press release.

Google announced today that it has agreed to acquire YouTube, the consumer media company for people to watch and share original videos through a Web experience, for $1.65 billion in a stock-for-stock transaction. Following the acquisition, YouTube will operate independently to preserve its successful brand and passionate community.

Although the price seems to be a lot of money, Google did not pay any money; it is just about 2% of the Google stock value.  Now with the rumors of YouTube acquisition Google stock value has already gone up by 5%  - so Google bought YouTube virtually for free - it was a clever move by Google.

In a statement, Google said YouTube will operate as an independent unit of Google once the deal closes and will retain the YouTube brand name. But it won’t be a surprise if we see lots of adsense ads on YouTube soon.

 

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