Mumbai: Internet search giant Google Inc has closed its $1.65-billion acquisition of online video-sharing site YouTube. Google had issued 3,217,560 shares to pay for YouTube. It also paid restricted stock units, options and a warrant that can be converted into 442,210 shares of Google's common stock, the Mountain View, California-based company said in a statement.
The $1.65-billion stock deal includes around $15 million, which Google provided to YouTube early in October.
YouTube will hold one-eighth of the equity, or roughly $200 million, in escrow as security on certain unspecified indemnification obligations - possibly for meeting compensation claims for copyright violations.
While YouTube enjoyed explosive growth and pioneered a new grassroots online video star-making system, its popularity has also been fueled by the widespread availability of copyrighted TV episodes and music videos for which media companies say they should be compensated.
San Bruno, California-based YouTube says it serves up more than 100 million videos a day.
Google and YouTube, meanwhile, are going ahead with plans to strike deals with video producers that would allow them to share in revenue when such programming appears on YouTube. They hope to provide innovative services for users that will add a new dimension to on-line media entertainment. "We look forward to working with content creators and owners large and small to harness the power of the internet to promote, distribute and monetize their content, said Chad Hurley, CEO and co-founder of YouTube.
Hurley also said, "Google's expertise, technology leadership, and resources will provide us with the flexibility to innovate and build the best, most entertaining service on the internet. In the coming months, we will roll out many new exciting features and programmes to benefit the creativity and participation of our community." Investors are concerned that Google could be financially liable for | 
