One of the key reasons why Google acquired YouTube was to get into the business of video sharing. This is an idea the company had tried and tested with Google Videos, and it had failed. It was therefore an easy choice for the company to purchase YouTube which at the time was doing a very good job at video sharing.

Why did Google take over YouTube?

On October 9, 2006, it was announced that the company would be purchased by Google for US$1.65 billion in stock, which was completed on November 13. The agreement between Google and YouTube came after YouTube presented three agreements with media companies in an attempt to avoid copyright-infringement lawsuits.

Will Google buy YouTube?

Google announced this afternoon that it would buy YouTube, the popular video-sharing Web site, for stock that it valued at $1.65 billion. By successfully negotiating the deal, Google has once again proved that it is the Internets dominant player.