Google Reportedly in Talks to Acquire YouTube6 Oct, 2006 By: Andrew Wallenstein
Google is in talks to acquire YouTube, according to a Wall Street Journal report filed online Friday.
Neither Google or YouTube have yet responded for comment. The WSJ report cites a highly placed source confirming rumors that began circulating in the blogosphere Thursday.
The report notes that the Internet search giant is prepared to purchase the popular viral-video site for $1.6 billion. WSJ described the negotiations as being in a “sensitive stage and could well break off.”
The combination of the two companies could create a Web powerhouse, with YouTube supplying an expertise in streaming user-generated videos that has not been Google's specialty to date.
The San Mateo, Calif., company has been the subject of takeover rumors with astronomical price tags in recent months, though threats of legal actions from content companies over its usage of copyright-violating video has also cast a cloud over its prospects.
YouTube founder and CEO Chad Hurley has publicly discussed seeking an IPO in the future, but never ruled out a sale.