Google buys YouTube

"This Just In

Google (GOOG) just announced that it has agreed to acquire privately held YouTube for $1.65 billion in stock. YouTube is the top-rated Internet video-sharing site on the Internet. The deal is GOOG's largest yet, and is regarded as a defensive move as it jumps GOOG into a leading role in online video. This realm is a growing one in the Internet marketplace. YouTube now streams 100 million videos daily to an audience that includes roughly 40 million people per day. This acquisition seems to signal that video is a better way to attract larger numbers of customers and generate more advertising dollars. The boards of both companies approved the terms of the deal today, and it was just announced after the closing bell ."

Source: Schaeffer's Market Recap [enews@schaeffer.com]