It is now official. Google has announced that it has purchased YouTube for 1.65 billion dollars in stock. The two companies will continue to operate independently.
Several distribution deals were also worked out. It looks as if some major companies were much more willing to become involved with Google owning YouTube than were when YouTube didn't have a big backer. Those in the distribution deals include CBS, Sony BMG, Warner Music and Universal Music Group.
Besides the advertising supported video content, it will also be possible to purchase music video downloads.
Here are links to some articles with more details:
Bloomberg.com: Worldwide
BBC NEWS | Business | Google buys YouTube for $1.65bn
Google buying YouTube - Oct. 9, 2006