Democratic Underground - U.S. tech stocks climb on Google's YouTube deal

Reply #11: U.S. tech stocks climb on Google's YouTube deal [View All]

ozymandius

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Tue Oct-10-06 06:06 AM
Response to Original message

11. U.S. tech stocks climb on Google's YouTube deal

NEW YORK (Reuters) - U.S. technology stocks gained on Monday ahead of an announcement by Web search company Google Inc. (Nasdaq:GOOG - news) that it will acquire online video service YouTube Inc., offsetting concerns surrounding North Korea's nuclear test.

Google shares rose to their highest in more than five months ahead of the Internet search company's announcement after the closing bell that it would pay $1.65 billion in stock for YouTube.

While shares of the acquiring company usually drop following a takeover announcement, Google stock's rose in extended trading, suggesting investors believe the deal is attractive.

"This is a very good move for Google strategically as it opens to them the possibility to grow in one Internet area where they were not very big -- that is, video," said Steve Neimeth, portfolio manager for AIG SunAmerica Asset Management in Jersey City, New Jersey.

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Reply #11: U.S. tech stocks climb on Google's YouTube deal [View All]