Google Acquires YouTube for $1.65 B

Elena
10 Oct, 2006
New York City

The acquisition of the No. 1 Internet video-sharing site on the Web is the biggest deal for Google, giving the online search engine a leading role in the Internet''s online-video marketplace. The deal is expected to close in the fourth quarter. Shares of Google rose 2% to $429, and were up as much as $4 a share in after-hours trading.

[R]8:00AM Google agreed to acquire YouTube for $1.65 billion.[/R]
Google Inc. ((GOOG)) agreed late Monday to takeover privately held YouTube Inc. for $1.65 billion in stock, with the boards of both Google and YouTube approving the terms of the deal. Google agreed to let YouTube operate as a separate unit and work out of its offices in Silicon Valley. It also allowed youTube to keep all its employees. The deal is expected to close in the fourth quarter. Further details were not revealed.

The acquisition of the No. 1 Internet video-sharing site on the Web is the biggest deal for Google, giving the online search engine a leading role in the Internet''s online-video marketplace. Like other Internet companies, Google relies on video to attract bigger numbers of customers and generate more advertising profits. There are plans for incorporating YouTube videos into Google search results, and making YouTube part of Google''s AdSense advertising feature. YouTube currently streams 100 million videos daily to an audience of nearly 40 million a day.


[R]7:30AM Asian markets recover from N. Korea scare, end higher on Tuesday.[/R]
Asian markets ended higher on Tuesday. The Nikkei 225 Average in Japan finished up 0.3% at 16,477.3. Shares of Canon gained 0.9, while automaker Toyota''s shares rose 0.7%. Shares of Toshiba Corp gained 2% after the company said it will invest 5.5 billion yen ($46 million) in a venture to produce LCD panels with a Polish subsidiary of South Korea''s LG.Philips LCD Co.

South Korea''s Composite Stock Price Index, or Kospi, was up 0.7%, at 1,328.37, rebounding from a 2.4% slump in the previous session. South Korean steelmaker Posco Co. advanced as much as 2.1% on expectations of further industry consolidation in the wake of Tata Steel of India bid for the Anglo-Dutch Corus Group Plc. Shares of Samsung Electronics Co ended up 0.2%.

Hong Kong Hang Seng Index gained 0.8% to 17,823.7. The China Enterprises Index rose 1.3% and shares listed in Malaysia, New Zealand and Shanghai traded nearly flat. Singapore Straits Times Index edged up 1%, while Indonesia Jakarta Composite was up 0.7%.
Australia S&P/ASX 200 index advanced 1%. BHP Billiton advanced 3.1%. Upbeat oil prices inspired shares of oil and gas producers. Inpex Holdings Inc gained 1.5%. Australian Woodside Petroleum advanced 1.6%


[R]6:30AM European markets advanced, recovering from political concerns.[/R]
European markets were higher by mid-morning on Tuesday. London FTSE 100 gained 0.3% to 6,048.0, Frankfurt Xetra Dax added 0.5% to 6,111.41, and the CAC 40 in Paris climbed 0.4% to 5,306.83.

Advancers

EADS, the French aerospace group, rose 3.9% after the new chief executive of the company troubled Airbus unit said there would be painful job cuts. The U.K. index got a boost from mobile phone giant Vodafone shares of which climbed 2.4%.

French aero-engine maker, Safran, gained 3.3% after it revealed late on Monday its CFM56 engine set a new sales record at the company. Ras Holding gained 1.6% and French group Axa rose 1.1%

Banca Intesa in Italy rose 1.5% as it neared agreement on a sale of a number of its branches to Credit Agricole in order to meet regulatory terms for the approval of its merger with Sanpaolo IMI. Sanpaolo shares gained 1.3%. Sanofi-Aventis shares added 0.6%.

Decliners

There was no eminent decliner this morning in Europe.

Oil and gold

Crude oil for November delivery rose 58 cents to $60.54 a barrel in Asian electronic trading on the NYME. November Brent crude at London ICE Futures traded 31 cents higher at $60.85 a barrel.

Gold rose as high as $579.60 an ounce and slid to $578.40/579.40 an ounce, still higher than $576.00/577.10 an ounce late in New York.

Currencies

The euro inched down to $1.2598 from $1.2605.The dollar initially gained to 119.35 yen, its highest level since hitting 119.40 yen Feb. 3, but fell to 119.10 yen, down from 119.12 yen late Monday in New York. The British pound traded at $1.8672, compared with $1.8706 yesterday.