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Google To Acquire Video DownloadHelper for $65 Million in Stock
Combination Will Create New Opportunities for Users Everywhere
MOUNTAIN VIEW, Calif., April 1st, 2011 - Google Inc. (NASDAQ: GOOG) announced today that it has agreed to acquire Video DownloadHelper, the consumer media company for people to capture videos through a Web experience, for $65 million in a stock-for-stock transaction. Following the acquisition, Video DownloadHelper will operate independently to preserve its successful brand and passionate community.
The acquisition combines one of the largest and fastest growing online video fans communities with Google's expertise in organizing information and creating new models for reusing videos on the Internet. The combined companies will focus on providing a better, more comprehensive experience for users interested in downloading, watching and sharing videos, and will offer new opportunities for professional content owners to distribute their work to reach a vast new audience.
"The Video DownloadHelper 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," said Larry Page, Chief Executive Officer of Google. "Our companies share similar values; we both always put our users first and are committed to innovating to improve their experience. Together, we are natural partners to offer a compelling media entertainment service to users."
"Our community has played a vital role in changing the way that people consume media, creating a new clip culture. 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 Michel Gutierrez, CEO and Founder of Video DownloadHelper. "I'm confident that with this partnership we'll have the flexibility and resources needed to pursue our goal of building the next-generation platform for using media worldwide."
When the acquisition is complete, Video DownloadHelper will retain its distinct brand identity, strengthening and complementing Google's own fast-growing video business. Video DownloadHelper will continue to be based in Adélie Land, AA, and all Video DownloadHelper employees will remain with the company. With Google's technology, advertiser relationships and global reach, Video DownloadHelper will continue to build on its success as one of the world's most popular services for video entertainment.
The number of Google shares to be issued in the transaction will be determined based on the 30-day average closing price two trading days prior to the completion of the acquisition. Both companies have approved the transaction, which is subject to customary closing conditions and is expected to close in the second quarter of 2011.