Google in talks to buy YouTube for $1.6b
Posted: 07 October 2006 0342 hrs
SAN FRANCISCO - The YouTube video-sharing website and Google
internet giant sternly declined to comment Friday on reports that
they were discussing a 1.6 billion dollar takeover by Google.
YouTube workers ejected a television news camera crew that made its
way into the popular website's non-descript office in the heart of
San Francisco.
"We do not comment on rumor and speculation," said Google spokesman
Jon Murchinson.
The young website was in the spotlight as the result of a Wall
Street Journal report citing an inside source as saying Google was
courting YouTube to the tune of 1.6 billion dollars.
The discussions between the companies remained "delicate" and could
be stopped, the daily newspaper quoted the source as saying.
The report reinforced rumour that circulated in financial markets
and the weblogs of high-tech industry watchers.
On the TechCrunch weblog, Michael Arrington claimed to have
received an e-mail from "a very good source" indicating that
Google's acquisition of YouTube was in its final stages.
YouTube soared to online popularity after its launch in February of
2005.
The company claims that more than 100 million videos are watched
daily by visitors to the free website, which features content
provided by users.
The challenge for YouTube has become finding ways to make money off
its broad range of online visitors, according to analysts.
By purchasing YouTube, Silicon Valley based Google would be able to
apply its proven prowess for generating revenue through online
advertising.
It would also be a formidable alliance of two of the Internet's
major video sharing sites.
- AFP /ls
