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Founders Chad Hurley and Steve Chen and their 65 employees will join the company, Google said today in a statement distributed by Business Wire. In less than two years, San Bruno, California-based You Tube has catapulted from startup to Internet icon with 34 million monthly U.S. visitors.
The stock purchase, Google's largest, underscores the pressure on the Mountain View, California-based company from startups such as You Tube and friend-finder Facebook.com, which are creating new markets for film clips and social networking. The acquisition also builds on Google's strategy to add more content to attract advertisers.
Shares of Google rose $8.50 to $429 at 4 p.m. New York time in Nasdaq Stock Market composite trading. They have risen 3.4 percent this year.