The Journal reports:
Google Inc. agreed to buy closely-held YouTube Inc. in an all-stock deal worth about $1.65 billion, a transaction that will unite the popular video-sharing site with Google’s online advertising system.
Under the terms of the deal, which was expected, YouTube will at least initially retain a significant measure of independence, keeping its brand and offices. YouTube will continue to be based in San Bruno, Calif., and all YouTube employees will remain with the company. The companies said they expect to close the transaction in the fourth quarter.