Google / YouTube

Google, the listed California-based Internet search provider, announced today it has agreed to acquire YouTube for USD 1.65bn in stock.

Privately held YouTube, also based in California, is the consumer media company for people to watch and share original videos through a Web experience. Following the acquisition, YouTube will operate independently to preserve its successful brand and passionate community. All YouTube employees will remain with the company. The number of Google shares to be issued in the transaction will be determined based on the 30-day average closing price two trading days prior to the completion of the acquisition.

Both companies have approved the transaction, which is subject to customary closing conditions and is expected to close in the fourth quarter of 2006. The acquisition combines one of the largest and fastest growing online video entertainment communities with Google's expertise in organizing information and creating new models for advertising on the Internet. The combined companies will focus on providing a better, more comprehensive experience for users interested in uploading, watching and sharing videos, and will offer new opportunities for professional content owners to distribute their work to reach a vast new audience.

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