Google acquired YouTube in 2006 for about $1.65 billion in Google stock.
YouTube was founded in 2005 by former PayPal employees Steve Chen, Chad Hurley, and Jawed Karim. The service allowed people to upload, watch, and share online video at a time when video publishing on the web was becoming much easier.
Google announced the acquisition on October 9, 2006, and the deal closed later that year. YouTube continued operating as a distinct service rather than being absorbed into Google Video, Google’s own video product at the time.
The acquisition gave Google a major position in online video and created a platform that later expanded into advertising, music, live streaming, subscriptions, and professional media. A common mix-up is assuming YouTube was created by Google; it was an independent startup before the acquisition.