Search providers announces $1.65 billion dollar deal for video-sharing site

Google has agreed to acquiring the video-sharing site Youtube for $1.65 billion in stock.

Google said that Youtube will continue to operate independently, and that the company would keep its own headquarters and employees.

Rumours surfaced last week that an acquisition between the two companies was in the works. Industry analysts at the time speculated that an acquisition could be mutually beneficial, allowing Youtube to tap into Google's vast economic and technological resources while giving Google access to Youtube's millions of viewers.

Those sentiments were echoed in the words of the two companies' CEOs.

"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," said Google chief executive Eric Schmidt.

YouTube chief executive Chad Hurley said, "by joining forces with Google, we can benefit from its global reach and technology leadership to deliver a more comprehensive entertainment experience for our users and to create new opportunities for our partners."

Google expects the acquisition to be finalized by the end of 2006.