Google buys Youtube?

Yahoo bought Jumpcut, it makes sense that Google want to expand further in that space as well. They recently put video on their homepage to promote their Google Video service. Traffic stats indicate it lags far behind Youtube (source: Hitwise).

Now, TechCrunch posts that there are rumors that Google’s going to acquire Youtube.

The Wall Street Journal is now reporting this as well, saying “Google Inc. is in talks to acquire popular video-sharing site YouTube Inc. for roughly $1.6 billion, according to a person familiar with the matter. The discussions are still at a sensitive stage and could well break off, this person says.”

It’s pretty obvious that Youtube have the FOR SALE BY OWNER sign on their front lawn. Their burnrate is in the millions per month which is close to the days of Bubble 1.0. Let’s see what happens.