Over the weekend, Google Inc. acquired YouTube, the consumer media company that allows people to watch and share videos through the Internet, for $1.65 billion in a stock-for-stock transaction. You don’t need to worry though; YouTube will continue to operate independently from Google, retaining its successful brand and loyal community.

"The YouTube team has built an exciting and powerful media platform that complements Google's mission to organize the world's information and make it universally accessible and useful," Google CEO Eric Schmidt said in a statement.

"By joining forces with Google, we can benefit from its global reach and technology leadership to deliver a more comprehensive entertainment experience for our users and to create new opportunities for our partners," said Chad Hurley, CEO and co-founder of YouTube.

In addition to this, Hurley, along with partner Steve Chen, released a video statement on the site. This statement comes off much like everything else you see on YouTube, poorly planned and badly executed. At one point, the cameraman asks what the deal means for YouTube’s users, but the pair is too caught up in their own antics to answer.

The deal was developed in less than a week, and the purchase price is an amazing sum for a company like YouTube, which has only 67 employees and was founded just 19 months ago. To complete the deal, Google paid nothing in cash (the $1.9 billion came from a dilution of Google’s shareholder base by about 1.2%), which allowed the transition for YouTube investors and employees to remain tax free.

Of course, the Internet community is alive with conversation, with everyone and their grandmothers giving their opinions. Some say that the deal is a great thing and will only make YouTube better. Opponents of the deal disagree, saying Google will ruin YouTube with its advertising.

It’s at this point that civilized conversation breaks down and things degenerate into a flame war. I am simply wondering if YouTube, despite its obvious greatness, is really worth $1.65 billion.

In any case, it will be a while until noticeable changes, if any, appear on the site. YouTube’s basic function will remain the same, which is why we all like the site anyways. So just sit back, upload your videos of drunken friends singing Simon and Garfunkel songs, and enjoy the ride.

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