Internet search company Google has bought the video sharing website, YouTube, for $1.65bn in shares, combining two of the most popular online brands.
The two companies will continue to operate independently.
YouTube was started less than two years ago in a garage and visitors to the site now watch 100 million videos daily.
It attracted 72 million visitors in August, up from 27 million users in April and just 2.8 million a year ago.
However the YouTube service has come under scrutiny from major media companies due to copyrighted television and music videos that users post without owner consent.
While YouTube says it has signed a spate of distribution agreements with major studios, it is thought that with the corporate backing of Google it could now become a more inviting target for lawsuits.
The new studio agreements will see advertising generating revenue by encouraging users to click on companies' links alongside the videos.
Google said that it was drawn to YouTube because it was the clear market leader and had put together a 'remarkable team' in a short time.
