Friday, October 06, 2006

Rumor: Google in Talks to Buy YouTube

The Web site Techcrunch was reporting Friday that Google, the Web search giant, is in discussions to acquire video sharing site YouTube. The potential price was said to be about $1.6 billion, although the site cautioned that the tip was still unconfirmed.

Millions of users flock to YouTube to view a motley mix of homemade videos as well as television and movie clips — many of them posted without a thought to who might own the copyright. The site is still fleshing out its business model, gathering sponsorships and advertisers while trying not to turn off its legions of viewers. Media companies are still unsure whether to view the site as a threat to their livelihood or a valuable partner.

Given its popularity, speculation has run rampant that someone would want to buy YouTube to tap into its growth and steady stream of eyeballs.

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