Its confirmed. Google buys youtube for $1.6 billion

SAN FRANCISCO (MarketWatch) - Google Inc. said Monday it's buying No. 1 Internet video sharing Web site YouTube Inc. for $1.65 billion in stock. The deal is regarded as a largely defensive one that leapfrogs Google into a leading role in a burgeoning Internet marketplace. Moreover, the Google/YouTube deal highlights how Google (GOOG : google inc cl a
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10:46am 10/10/2006

YHOO24.74, -0.29, -1.2%) and other Internet companies are betting heavily on video to attract more customers and generate more advertising revenue. Indeed, many analysts chiming in on the deal Monday suspect Google's competitors will now seek to buy YouTube-wannabes in order to keep pace with their rival. On Monday, the boards of directors of both Google and YouTube approved the terms of the deal, which was announced after the market closed for the day.

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