Google, who runs a video-sharing site called Google Video, have – after a few days of speculation – announced that it will buy YouTube, the popular video-sharing Web site, for stock that it valued at $1.65 billion. The NY Times says:

The acquisition of the privately held YouTube will enable Google to thrive in one area of the Internet where it has so far failed to gain footing. According to Hitwise, which monitors Web traffic, has the lion’s share of online video traffic. YouTube has a 46 percent share, MySpace has 23 percent and Google Video has 10 percent.

We imagine that there are a lot of other media groups who are eyeing this with fascination, frustration and even worry.

Google to Acquire YouTube for $1.65 Billion – New York Times

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