Google purchases YouTube for $1.65 billion

October 9, 2006 On Monday, October 9, 2006, Google Inc. announced its decision to purchase YouTube, the popular video-sharing site, for $1.65 billion in stock. Following the closure of the deal, YouTube will operate independently, "to preserve" its user community and its brand, the announcement said.

Eric Schmidt, CEO of Google stated "The YouTube team has built an exciting and powerful media platform that complements Google's mission to organize the world's information and make it universally accessible and useful. Our companies share similar values; we both always put our users first and are committed to innovating to improve their experience. Together, we are natural partners to offer a compelling media entertainment service to users, content owners and advertisers."

"We are excited to have the resources to move faster than ever before," co-founder Chad Hurley, YouTube's 29-year-old CEO, told the Associated Press during a Monday interview.

100 million videos are watched on the YouTube's flash based site every day, including professional movie and TV clips and music videos, as well as amateur content.