Google has signed a deal to acquire the YouTube video platform for $19 billion, according to sources familiar with the transaction.
The deal, which will be announced on Thursday, was reached with YouTube, which was founded in 2004 and is a major player in the digital advertising space.
Google will use the $19-billion in cash to buy a majority stake in the company, which has more than 1 billion monthly users.
YouTube CEO Susan Wojcicki, who joined Google in 2012, has already said that the deal will help the company expand its reach beyond video, with a new YouTube News app and other content-related features, according the sources.
The announcement comes at a time when Google has been struggling with the loss of advertising revenue in a rapidly evolving market.
YouTube said in January that its ad revenue had dropped from $2.2 billion in 2016 to $1.6 billion in 2017, as its ad spending dropped to $3.1 billion.
The platform reported a net loss of $7.9 billion for the year.
The YouTube acquisition will make it easier for Google to invest in new products and services, said one of the sources familiar.
The deal is expected to close in the fourth quarter.
The news of the acquisition comes just a week after Facebook Inc. said it had reached a deal with Alphabet Inc. to buy the social-media giant for $4.9 million, according a person familiar with that deal.
The person did not provide further details.
Shares of Google fell 0.4% to $14.35 in New York, but have gained nearly 2% in 2017.