As reported by me on my previous post, Google and YouTube were talking about an acquisition deal for about $1.6 - $2 billion.
The deal has been done and confirmed a few moments ago. Google has acquired YouTube for $1.65 billion. Very few of us know that YouTube just started in 2005 with two guys as a core team. This is the largest deal google has made yet for an acquisition.

Both companies have approved the deal, which should officially close in the fourth quarter. YouTube’s 65 employees will remain with the company at YouTube’s San Bruno headquarters.

Details are also emerging that Yahoo was in the bidding war until very close to the end.

Google is hosting a conference call and webcast to discuss the deal. It is just starting now. You can hear it live at http://investor.google.com/webcast.html. If you miss it live, a replay of the call will be available until midnight Monday, October 16 at 888-203-1112 domestically and 719-457-0820 internationally. Confirmation code for the replay is 2260624.

What Google may be planning to do with YouTube?

• To integrate its AdSense for video in YouTube as its user exposer would be perfect for google.
• To earn lots of benefit from YouTube's largest Video database for search and all.
• To benefit from YouTube's great new technology to auto recognise video wheather its copyrighted or not.
• To Enjoy its popularity as Google video has made its biggest rival a part of history now.

The way to go Google... keep going