Google proves once again that it can close a big deal, picking up YouTube for a cool $1.65 billion in stock. The deal, expected to close in 4Q06, was approved by the boards today and announced after the market. Release. Webcast starting at 4:30. Details of the deal:
—Stock for stock transaction
—YouTube will operate independently to “preserve its successful brand and passionate community”.
— YouTube will continue to be based in San Bruno, CA, and all YouTube employees will remain with the company.
—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.
—YouTube only raised about $11.5 million in venture funding through its independent lifetime.
—WSJ mentioned that Sequoia, the main backer, hold about 30 percent of YouTube.
—YouTube was founded just 19 months ago and has 67 employees.
—More than 100 million videos, many of which are short videos created by the site’s users, are downloaded a day on the site.
—According to Hitwise, YouTube has about a 46 percent share of the online video market.
—Google stock up 8.5 percent today, prior to the deal’s official announcement.