How much did Google pay to acquire YouTube in 2006?

Google paid $1.65 billion in Google stock to acquire YouTube in 2006. Google announced the deal on October 9, 2006, and the acquisition was completed on November 13 of that year.

At the time, YouTube was a rapidly growing video-sharing service founded in 2005 by former PayPal employees Steve Chen, Chad Hurley, and Jawed Karim. Its popularity was increasing quickly, but the company also faced major challenges involving bandwidth costs and copyright claims. Google’s resources and advertising expertise made the purchase strategically attractive.

The transaction was structured as a stock deal rather than a cash payment. YouTube continued operating as a distinct brand after the acquisition, with its founders initially remaining involved in the company. The purchase helped Google establish a dominant position in online video and eventually supported the expansion of advertising, creator tools, and subscription services.

A common mistake is remembering the $1.65 billion figure as the amount in cash. The widely reported figure refers to Google stock, and the announcement date differs slightly from the date the deal formally closed.