In a press release issued late this afternoon, Google confirmed the rumours swirling around since last week that they would be acquiring the popular online video service, YouTube.Â Google will be acquiring YouTube for $1.65 billion in a stock-for-stock transaction.Â Following the acquisition, YouTube will continue to run independently in order to preserve the community already built up.
The two companies will, however, work together to create a more enhanced and comprehensiveÂ user experience.Â YouTube will retain its brand identity, and compliment Google Video.Â This news is sure to please skeptics who have wondered if the YouTube brand would be diluted and merged with the acquisition.Â
According to the press release:
“When the acquisition is complete, YouTube will retain its distinct brand identity, strengthening and complementing Google’s own fast-growing video business. YouTube will continue to be based in San Bruno, CA, and all YouTube employees will remain with the company. With Google’s technology, advertiser relationships and global reach, YouTube will continue to build on its success as one of the world’s most popular services for video entertainment.
The number of Google shares to be issued in the transaction will be determined based on the 30-day average closing price two trading days prior to the completion of the acquisition. Both companies have approved the transaction, which is subject to customary closing conditions and is expected to close in the fourth quarter of 2006. “
A conference call discussing the acquisition is scheduled for 1:30pm PST.Â Interested parties mayÂ call 888-203-1112 domestically and 719-457-0820 internationally to hear a replay of the conference call. The confirmation code for the replay is 2260624.