Array

SAN FRANCISCO, Oct 9: Web search leader Google Inc.'s $1.65 billion deal to acquire Web video-sharing site YouTube.com is part of a broader strategy to invest in the emerging market online video, a top executive said on Monday.

Google Chief Executive Eric Schmidt told investors and news reporters on a conference call following news of the deal that YouTube will be ''one of many investments'' Google plans to make in the video field.

David Drummond, Google's senior vice president of corporate development and general counsel, said the $1.65 billion acquisition price will be slightly dilutive to Google earnings for the remainder of this year and into 2007.

''There will be some slight dilution this year and next, but we think this is a good structure,'' Drummond said.

In response to a Wall Street analyst's question, Schmidt declined to quantify this impact on earnings, reiterating the company's policy against commenting on its financial outlook.

REUTERS