Rumours were circulating since the past week about the Google and Youtube deal and now finally it has turned into reality. The price makes YouTube Inc., a still-unprofitable startup, by far the most expensive purchase made by Google during its eight-year history. Youtube will retain its brand and 67 employees who will be laughing their way to a Maserati showroom. Surprisingly Google will continue to run its less popular Google Video service. Investors were really happy with the deal and Google's share rose by $8.50 to close at $429 on Nasdaq. The deal is expected to close by 2Q 2006 do let us know your thoughts on this.
(Video of founders Chad Hurley and Steve Chen after the jump)

The biggest dot.com purchase is that of Broadcast.com by Yahoo inc for $ 5.7 billion in 1999.
Check out the History of Internet Acquisitions here.