There has been all kinds of buzz around the Internet in the last 24-hours regarding acquisition rumors that Google is going after YouTube for the sum of $1.6 billion. From the sounds of it there is much more than speculation involved but the discussions are still in the very early stages and could end at any time.
I think Google is one of the few companies that would be able to purchase YouTube simply because of the amount of bandwidth that is needed to keep it running. The last report that I heard was that YouTube was spending over $1 million each month just to meet the high bandwidth demand. Their growth is increasing so rapidly that not many companies would be able to meet the scalability needs but Google should already know how to handle it.
The primary question that I was asking myself was whether Google would keep the two video services separate or combine YouTube into Google Video. I would think that they would keep them separate just so YouTube users don’t get confused and leave, but I am sure that they would put Adsense on the page to help generate revenue. They may, however, allow users to cross-search both sites when they are performing a search to help increase the quality of the results that are returned.
This will be very interesting to watch and if Google doesn’t scoop up YouTube I wonder if anyone else is going to try and cough up the money to purchase them.