Google, the online search giant, agreed to buy YouTube, the video sharing phenomenon that is the darling of an internet resurgence known as Web 2.0. Google has agreed to buy YouTube for $1.65bn.
Youtube had been coveted by virtually every big media & technology company, as they seek to tap into a generation of consumers who are viewing 100 million short video on the site everyday.
The deal had been widely expected after rumours of advanced negotiations began circulating late last week.
YouTube currently boasts 34 million US visits a month, shows 100 million videos per day and uploads 65,000 new clips every day.
The acquisition means that Google will likely become the second most visited site on the Internet with 101 million unique visitors, behind Yahoo Inc’s 106.7 million visitors but ahead of Microsoft’s MSN Internet division’s 98.5 million, according to Nielsen Net Ratings.
Google is expected to try and generate revenue from YouTube by integrating the site with its search technology & search based advertisement program.