Google announced early Tuesday that its acquisition of video sharing site YouTube has closed. The mostly stock deal was initially priced at $1.65 billion, although at Monday's closing price of $481.03 per Google share, YouTube walked away with $1.775 billion.
The hefty profit for YouTube investors lies in the calculation of Google's stock value, which was taken as an average over 30 trading days ending on November 9, 2006. 12.5 percent of the stock will be placed in escrow for one year, Google said, in order to secure certain indemnification obligations.
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YouTube, Deal Closes at $1.775 Billion