Yep. It’s on.
Google Inc. (NASDAQ: GOOG) announced today that it has agreed to acquire YouTube, the consumer media company for people to watch and share original videos through a Web experience, for $1.65 billion in a stock-for-stock transaction. Following the acquisition, YouTube will operate independently to preserve its successful brand and passionate community.
It's a bit unusual for Google to do this as an all-stock deal. But it makes sense here, where any cash component would probably create huge tax liabilities for YouTube's owners. It also means that Google just picked up YouTube for about 1 % of its equity. That’s the power of a $125 billion market cap.
To access the conference call, dial 800-289-0572.
Google To Acquire YouTube for $1.65 Billion in Stock [Google Press Center]