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2/8/2007

Cool millions for YouTube founders

02/8/2007 | Filed under: Updated eBiz News, eBusiness Technology — site admin @ 10:15 am

The investors and founders of YouTube received hundreds of millions of dollars in Google shares as a result of the deal between the two companies late last year, according to new documents.

The big payout was revealed Wednesday in a regulatory filing Google made with the Securities and Exchange Commission. The paperwork offered a more detailed account than previously disclosed of the sale’s beneficiaries.

The $1.76 billion acquisition of the video-sharing Web site was the biggest in Google’s history, and took place less than two years after YouTube was founded. The startup had about 70 employees when the deal was announced in October.

In total, online search leader Google Inc. registered about 3.23 million Class A shares to issue to former YouTube stockholders, according to the filing.

YouTube’s three founders and Sequoia Capital, its main financial backer, received the biggest windfalls.