James, the Duke of York, received control of New Netherland. The name of the colony was changed to New York in honor of the Duke.
When New York Colony was founded-
New York started out it's life as New Netherlands and was founded by the Dutch in 1664. The English king, King Charles II did not like the Dutch trading with the English colonies so they sent out warships to fight the Dutch. The Dutch saw how many English warships there was and decided to give it up without a fight in August of 1664. They changed the name from New Netherlands to New York named after the kings brother the Duke of York.
Why the New York Colony was founded-
England drove the Dutch out of New Netherlands because they thought they were a threat, the Duke of York owned it and called it New York.