According to Google’s official press releases, they’ve purchased YouTube.com for 1.65 billion dollars in shares.
This is by far the biggest and possibly most insane purchase Google has ever made in their competitive lifetime. I’m not sure exactly what to say. Personally I’ve never liked YouTube, but I have liked Google’s own Video service for various little reasons. But, YouTube has an insane amount of users and an insane amount of content.
The content is the questionable part. Although rumour has it that Google has in their plans (and has started already) to get the real guys to provide content (music videos, etc.) for YouTube for free* – there are plenty of things there that are still questionable and will definitely result in Google now being sued.
YouTube had never really been sued (much) and the reason is simple — there were no big backers and nobody with money worth suing. Now there is. Good luck Google.
Google can handle it.
The official release: http://www.google.com/press/pressrel/google_youtube.html