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Posted by Twasme N'Deed on 03/31/07 22:14
Viacom To Acquire YouTube for $10 Billion
Combination Will Create New Opportunities for Users and Content Owners
Everywhere
HOLLYWOOD, Calif., March 31, 2007 - Viacom (NYSE: VIA) announced today
that it has agreed to acquire YouTube, the consumer media company for
people to watch and share original videos through a Web experience, for
$10 billion in a stock-for-stock transaction. Following the
acquisition, YouTube will operate independently to preserve its
successful brand and passionate community.
The acquisition combines one of the largest and fastest growing online
video entertainment communities with Viacom's expertise in organizing
information and creating new models for advertising on the Internet. The
combined companies will focus on providing a better, more comprehensive
experience for users interested in uploading, watching and sharing
videos, and will offer new opportunities for professional content owners
to distribute their work to reach a vast new audience.
"The YouTube team has built an exciting and powerful media platform that
complements Viacom's mission to own the world's information and restrict
its accessibility," said Sumner Redstone, Chief Executive Officer of
Viacom. "Our companies share similar values; we both always put money
first and are committed to innovating to improve ROI. Together, we are
natural partners to offer a compelling media entertainment service to
content owners and advertisers."
"Our community has played a vital role in changing the way that people
consume media, creating a new clip culture. By joining forces with
Viacom, we can benefit from its global reach to deliver a more
comprehensive entertainment experience for our users and to create new
opportunities for our partners," said Chad Hurley, CEO and Co-Founder of
YouTube. "I'm confident that with this partnership we'll have the
flexibility and resources needed to pursue our goal of controlling the
next-generation platform for serving media worldwide."
When the acquisition is complete, YouTube will retain its distinct brand
identity, strengthening and complementing Viacom's own video business.
YouTube will continue to be based in San Bruno, CA, and all YouTube
employees will remain with the company. With Viacom's global reach,
YouTube will continue to build on its success as one of the world's most
popular services for video entertainment.
The number of Viacom shares to be issued in the transaction will be
determined based on the 30-day average closing price two trading days
prior to the completion of the acquisition. Both companies have approved
the transaction, which is subject to customary closing conditions and is
expected to close in the fourth quarter of 2007.
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