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  • Google Acquires YouTube


  • 10/10/2006 - Google Acquires YouTube
    Mountain View, California - October 10, 2006 - Consumer video media company, YouTube, will be acquired by search engine Google, in a $1.65 billion stock-for-stock transaction. Following the acquisition, YouTube will operate independently to preserve its successful brand and passionate community.

    When the acquisition is complete, YouTube will retain its distinct brand identity, strengthening and complementing Google's own fast-growing video business. YouTube will continue to be based in San Bruno, CA, and all YouTube employees will remain with the company. With Google's technology, advertiser relationships and global reach, YouTube will continue to build on its success as one of the world's most popular services for video entertainment. 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.

    Eric Schmidt, Chief Executive Officer of Google remarked, ''The YouTube team has built an exciting and powerful media platform that complements Google's mission to organize the world's information and make it universally accessible and useful. Our companies share similar values; we both always put our users first and are committed to innovating to improve their experience. Together, we are natural partners to offer a compelling media entertainment service to users, content owners and advertisers.''

    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.

    Chad Hurley, CEO and Co-Founder of YouTube offered, ''Our community has played a vital role in changing the way that people consume media, creating a new clip culture. By joining forces with Google, we can benefit from its global reach and technology leadership to deliver a more comprehensive entertainment experience for our users and to create new opportunities for our partners. I'm confident that with this partnership we'll have the flexibility and resources needed to pursue our goal of building the next-generation platform for serving media worldwide.''

    Founded in February 2005, YouTube is a consumer media company for people to watch and share original videos worldwide through a web experience. YouTube allows people to upload and share video clips across the Internet through websites, blogs, and e-mail. YouTube currently delivers more than 100 million video views every day with 65,000 new videos uploaded daily and it has quickly become the leading destination on the Internet for video entertainment.

    Search engine Google's founders, Larry Page and Sergey Brin, developed a new approach to online search that took root in a Stanford University dorm room and spread to information seekers around the globe. Google is now widely recognized as the world's largest search engine. Google offers information in many different languages on topics including stock quotes, maps, and news headlines, phonebook listings for every city in the United States, images, and Usenet messages, with more than 1 billion posts dating back to 1981.



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