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Google to buy YouTube for $1.65 bil USD in stock

DailyTech reported last week the Google was in talks to buy online video site YouTube. The site currently holds nearly 50% of the online video search market and serves as many as 100 million videos per day.

Today, Google confirmed all of the rumors and announced that it has agreed to snap up YouTube Inc. for 1.65 billion dollars in stock. With the purchase, however, comes YouTube's baggage which consists of issues with copyright infringement and numerous lawsuits. The company is currently embroiled in a rather nasty fight with Universal Music.

Investors, on the other hand, for the most part have been enamored with the idea of a Google-YouTube merger. USA Today reports:

The deal would be by far Google's most expensive in its eight-year history. The lofty price underscores how important Google expects online video to become as more viewers and advertisers migrate from television to the Internet.

"This fits with Google's strategy," said Roger Aguinaldo, an investment banker who also publishes a dealmaking newsletter called the M&A Advisor, told the AP. "It's something that they couldn't build fast enough by themselves."

With this big merger now taken care of, who could be next on the takeover list? Investors are pointing fingers at a possible Yahoo acquisition of

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RE: If you can't beat 'em...
By Dactyl on 10/9/2006 7:58:49 PM , Rating: 2
Yes, it's called "The American Dream"

Starting an innovative company, being successful, and then selling it for an obscene amount of money to some bigger company.

It's a beautiful thing and that's why we have so much innovation in this country.

RE: If you can't beat 'em...
By JackTheLad on 10/9/2006 8:44:55 PM , Rating: 2
So Google pays $1.6 billion for a company that makes a loss, and that has no clear business plan to generate a profit.

This is all getting so reminiscent of 2000 and the internet bubble.

RE: If you can't beat 'em...
By Heron Kusanagi on 10/10/2006 4:28:59 AM , Rating: 2
Don't really think Google is such an idiot.

But I guess all Google needs to do now is to make a OS and they will be the new Microsoft.

“And I don't know why [Apple is] acting like it’s superior. I don't even get it. What are they trying to say?” -- Bill Gates on the Mac ads
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