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Excerpt from our Wall Street Breakfast, a one-page summary of the key market-moving and stock-moving stories of the day:

Dot-Com Boom Echoed in Deal to Buy YouTube [New York Times]

Summary: Google agreed yesterday to pay $1.65 billion in stock for 19-month old video sharing site YouTube. Google CEO Eric Schmidt asserted that the combination of Google's advertiser base, ad technology and infrastructure with YouTube's audience and content would create a "global media platform for users, content providers and advertisers all around the world." YouTube and Google simultaneously announced agreements with music companies Universal Music, Sony BMG and Warner Music, and TV studio CBS Corp., removing the threat of copyright litigation. Yahoo, News Corp and Microsoft also bid for YouTube, forcing Google to raise its offer price. But there are "eerie echoes of the late 1990’s boom time" -- Google VP David Drummond admitted that, "We modeled this on a more or less synergistic kind of model. You can imagine this would be hard to do on a stand-alone basis," and Viacom chairman Sumner Redstone said, "There are some issues with YouTube... They use other people’s products... The only way they avoid litigation now is they stop doing it if you call them."
Related links: Background info: Google-YouTube conference call transcriptYouTubeGoogle Video • Other news coverage: Google Looks To Boost Ads With YouTube [WSJ]• Commentary and analysis: YouTube Founders' YouTube Video on the Google DealYouTube and Sequoia Go Long Google StockGoogle's YouTube Acquisition May Just WorkGooTube: ResponsesPhil Davis' Google Play (discusses Google options).
Potentially impacted stocks and ETFs: The winner (or loser?): Google Inc. (NASDAQ:GOOG) • Rival online content players: Yahoo Inc. (NASDAQ:YHOO), News Corp (NASDAQ:NWS) • Rival online video players: Time Warner (NYSE:TWX), invested in Veoh; Apple Computer, Inc. (NASDAQ:AAPL).

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Source: Google and YouTube: Bubble Valuation or Strategic Wisdom?