Google announced today that they have completed the previously announced acquisition of YouTube.
The final price included $15 million in cash, 3,217,560 shares of Google Class A Common Stock, along with an additional 442,210 shares of restricted stock and warrants. The number of shares was determined by dividing the acquisition price, $1.65 billion, by an average value of Google stock over the last thirty days (this is a standard way of handling public company acquisitions). 12.5% of the stock is being held in escrow for one year.
Based on today’s closing price of $481.03 per share, the deal is already worth $1.775 billion to YouTube’s shareholders.
MOUNTAIN VIEW, Calif., November 13, 2006 - Google Inc. (NASDAQ: GOOG)
announced today that it has closed its acquisition of YouTube, the
consumer media company for people to watch and share original videos.
In connection with the acquisition Google issued an aggregate of
3,217,560 shares, and restricted stock units, options and a warrant
exercisable for or convertible into an aggregate of 442,210 shares, of
Google’s Class A common stock. The number of shares of Class A common
stock issued and issuable by Google was calculated by dividing $1.65
billion less certain amounts (approximately $15 million) funded to
YouTube by Google between signing and closing by the average closing
price for the 30 trading days ending on November 9, 2006. 12.5% of
the equity issued and issuable in the transaction will be subject to
escrow for one year to secure certain indemnification obligations.“We are excited to have closed the acquisition in order to begin
collaborating to offer the best in quality and depth of content, user
experience and new business opportunities for our partners,” said Eric
Schmidt, Chief Executive Officer of Google. “YouTube and Google will
together provide innovative and exciting services for our users that
will add a new dimension to on-line media entertainment. We look
forward to working with content creators and owners large and small to
harness the power of the internet to promote, distribute and monetize
their content.”“Google’s expertise, technology leadership, and resources will provide
us with the flexibility to innovate and build the best, most
entertaining service on the Internet. In the coming months, we will
roll out many new exciting features and programs to benefit the
creativity and participation of our community,” said Chad Hurley, CEO
and Co-Founder of YouTube. “The community will remain the most
important part of YouTube and we are staying on the same course we set
out on nearly one year ago. We will continue to gather and listen to
its feedback and are looking forward to the many opportunities that lie
ahead.”
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That was fast???
15 million in cash SweeeeeeT!!!
That’s pretty quick. Now, what’s next on the litigation front?
I am truly jealous!
Its still a nice life being broke..
but no Bentley
no 10 houses around the globe
no private jet
…
Bill Gates was right, this is truly a bubble!
Congrats to the YouTube fellows…
Congrats to everyone who has benefited, or is about to benefit, from the bubble.
Congrats to Albert Lai for the imminent sale of his company, er, BubbleShare, to News Corp for $5 million.
Congrats to the receptionist at YouTube, who will be getting $5 million (if not more) as well.
I bet the Youtube founder’s and employee’s will be partying hard tonight!!! Would love to see what that party is like.
-Jeff
http://blog.zemote.com
Earlier Kirkpatrick wrote a post on TechCrunch about how the Sequoia Capital VCs could walk away with $480 mill through the acquisition. I suppose with this new valuation, this means that Sequoia walks away with $592 mill? Let’s see more tech investments!!!
Yup, congrats to the YouTube guyz. I bet they can get some hot chicks now
BTW, Florian #4, very nice website!!
Thanks Vik
It took me some time to code all that - and still does.
I tried hard to promote it and it has some good hardware behind it - but still almost no users. I simply suck at promotion.
I once had the dream that it could get as big as flickr some day, but at the moment that dream-bubble has popped.
Google should have backed out while they still could.
Do not give up that dream, Florian. With my previous website, my experience is that it takes time for a website to bring in traffic. However, if you really believe in your product and/or service and you keep at it, people will come! I’m going through the same phase right now, with my old site being sold and new one just getting unwrapped. It can be discouraging at times, but that’s just life
So, while Google accomplishes the task of taking over YouTube. What’s next?
Its nice to know youtube will be always fast now.
It would be nicer with all that hypothetical google dark fiber free ad-revenue broadband fiber optic wireless municipal chocolate coated flash video… oops, I get ahead of myself.
Looking good.