October 7, 2006

Google considering buying YouTube in $1.6 billion ????

The rumor mill heated up with acquisition talks again on Friday, as reports began to surface that Google is in talks with popular video site YouTube. Sources told the Wall Street Journal that Google could pay around $1.6 billion for the startup.

Speculation surrounding YouTube's future is nothing new. The company has been bleeding money as it struggles to find a sustainable revenue model to cover its massive bandwidth costs, and an entrenched suitor like Yahoo or Google could give it a way out. However, copyright infringement issues could stall any buyout, as much of YouTube's content has been uploaded without permission.