Google Gobbles YouTube.
It wasn't that long ago that Google introduced Google Video as a competitor to YouTube. It looks like they couldn't compete:
Google announced this afternoon that it would buy YouTube, the popular video-sharing Web site, for stock that it valued at $1.65 billion....If you can't beat 'em, buy 'em.
The acquisition of the privately held YouTube will enable Google to thrive in one area of the Internet where it has so far failed to gain footing. According to Hitwise, which monitors Web traffic, has the lion’s share of online video traffic. YouTube has a 46 percent share, MySpace has 23 percent and Google Video has 10 percent.