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
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