The rumours were real! Google has purchased YouTube for $1.65 billion in a stock-for-stock transaction. Basically, the shareholders of YouTube get Google's (overvalued) stock in exchange for their shareholding. All employees of YouTube, including its founders, Chad Hurley and Steve Chen are retained.
How will this affect Google Video? Can Google make YouTube turn a profit? Can Google stave off copyright charges against YouTube? If YouTube is to be an independent unit of Google, why couldn't it just have struck an advertisement deal? Will Google change its name to 'GooTube'? :P It all remains to be seen.
Read on for Google's press release on the acquisition. The BBC has an article here. The image above is YouTube's headquarters in San Mateo, taken from Wikipedia.
UPDATE The founders of YouTube, Steve Chen and Chad Hurley have posted a video about the sale on their own site here.
Google To Acquire YouTube for $1.65 Billion in Stock
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