Google announced today that it has closed its acquisition of YouTube.

In a statement from Google, the search engine said that:

"In connection with the acquisition Google issued an aggregate of 3,217,560 shares, and restricted stock units, options and a warrant exercisable for or convertible into an aggregate of 442,210 shares, of Google's Class A common stock."

"The number of shares of Class A common stock issued and issuable by Google was calculated by dividing $1.65 billion less certain amounts (approximately $15 million) funded to YouTube by Google between signing and closing by the average closing price for the 30 trading days ending on November 9, 2006."

"12.5% of the equity issued and issuable in the transaction will be subject to escrow for one year to secure certain indemnification obligations."

You Tube has experienced massive growth since its creation in February 2005, however many commentators on the web believe that now the acquisition has been finalised it will open the floodgates to lawsuits questioning the legality of YouTube hosting copyrighted material.

Media industry sources in recent weeks have speculated up to $500 million of the price paid by Google would be put as a reserve to deal with potential copyright infringement suits aimed at YouTube.