Google/YouTube Acquisition Finalized.

Posted Nov 14, 2006

Yesterday, TechCrunch’s Michael Arrington had reported that the YouTube acquisition by Google Inc. has been finalized. Arrington wrote “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 were determined by dividing the acquisition price (after subtracting $15 million given to YouTube by Google before the acquisition) by the average value of Google’s stock in the 30 day period after the acquisition was announced (October 9, 2006).

The owners of YouTube can exhale a breath of relief as the valuation of YouTube has grown to $1.65 billion. However, there are still lawsuits pending and yet many other negotiations to take place. In an earlier Pulse 2.0 article, YouTube’s Co-Founder, Chad Hurley Calling Gaining Music Rights “A Mess” I conducted a run-down of potential issues that would need to be settled.

However to keep things on a lighter note, I found a video of MC Hammer watching a music video of himself at the YouTube headquarters, created by the YouTube user, YouTube (who I believe is Steven Chen):

Update: Earlier we reported that the deal was worth $1.775 billion, but it is actually $1.65 billion in stock.