Google Acquires Youtube for $1.65 Billion.

On 10th October we posted top four reasons why google would buy YouTube and on 11th October the deal was confirmed (Press Release: http://www.google.com/press/pressrel/google_youtube.html ).

In their largest acquisition to date, Google has acquired YouTube for $1.65 billion in an all stock transaction. Both companies have approved the deal, which should officially close in the fourth quarter. YouTube"s 65 employees will remain with the company at YouTube"s San Bruno headquarters.(Details of the conference call is available at http://www.earningscast.com/google-youtube-conference-call/ )

Details are also emerging that Yahoo was in the bidding war until very close to the end. Google contextual advertising service will definitely receive a major boost as Adwords publishers now have much more real estate to advertise their services on.