Monday, October 09, 2006
Google to acquire video site YouTube for $1.65 billion
"By Eric Auchard
1 hour, 30 minutes ago
SAN FRANCISCO (Reuters) - Web search leader Google Inc. (Nasdaq:GOOG - news) said on Monday it agreed to acquire top video entertainment site YouTube Inc. for $1.65 billion in stock, putting a lofty new value on consumer-generated media sites.
The deal, the first to value one of the new crop of user-participation Web sites at more than $1 billion, combines two of the most popular Internet brands: Google, synonymous with Web search and rapid innovation, and YouTube, a Silicon Valley upstart that has spearheaded the video-sharing craze.
In anticipation of the acquisition, investors pushed shares of Google up $8.50, or 2 percent, on Nasdaq on Monday to a closing price of $429.00 -- a level not seen since late April. In extended-hours trade following the announcement of the deal, Google stock dipped to $427.63.
The stock had already gained about 2 percent on Friday when reports emerged that a Google-YouTube deal might be in the works. In the last two trading days, Google has added nearly $4 billion in market capitalization, or more than twice what the company has agreed to pay for YouTube..."
"By Eric Auchard
1 hour, 30 minutes ago
SAN FRANCISCO (Reuters) - Web search leader Google Inc. (Nasdaq:GOOG - news) said on Monday it agreed to acquire top video entertainment site YouTube Inc. for $1.65 billion in stock, putting a lofty new value on consumer-generated media sites.
The deal, the first to value one of the new crop of user-participation Web sites at more than $1 billion, combines two of the most popular Internet brands: Google, synonymous with Web search and rapid innovation, and YouTube, a Silicon Valley upstart that has spearheaded the video-sharing craze.
In anticipation of the acquisition, investors pushed shares of Google up $8.50, or 2 percent, on Nasdaq on Monday to a closing price of $429.00 -- a level not seen since late April. In extended-hours trade following the announcement of the deal, Google stock dipped to $427.63.
The stock had already gained about 2 percent on Friday when reports emerged that a Google-YouTube deal might be in the works. In the last two trading days, Google has added nearly $4 billion in market capitalization, or more than twice what the company has agreed to pay for YouTube..."
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