Ending several days of intense media speculation, Google on Monday said it would buy YouTube for $1.65 billion in stock.

As part of the deal, YouTube will retain its brand and all of its 67 employees, including cofounders Chad Hurley and Steve Chen, writes the Associated Press. The Google-YouTube deal is expected to close in the fourth quarter, immediately catapulting the global search leader into the position online-video leadership as well.

The still-unprofitable YouTube is the most expensive acquisition by Google yet. "We are natural partners to offer a compelling media entertainment service to users, content owners and advertisers," Google CEO Eric Schmidt is quoted as saying.

"I'm confident that with this partnership we'll have the flexibility and resources needed to pursue our goal of building the next-generation platform for serving media worldwide," said Hurley, YouTube's CEO.

Earlier on Monday, YouTube and Google announced new partnerships with Universal Music Group, CBS and Sony BMG Music Entertainment. YouTube announced a similar arrangement last month with Warner Music Group.