Rumor Mill: Is Google in Talks to Buy YouTube?

My favorite blogger comment of the day came from Michael Arrington at  TechCrunch—the website that was cited in the Wall Street Journal and, subsequently, on a slew of media websites for being one of the first to report that Google is in talks to buy YouTube for an astounding 1.6 billion(yes, with a B) dollars. While these reports are still very much unconfirmed—and the Google spokesperson predictably refusing to comment—Arrington wrote, " Based on experience with these sort of rumors, I'd put this at 40% likely to be at least partially true."  I loved it.

I do wonder, however, if where there is smoke, there is fire–and what kind of information we will be digging up over the next few hours. A while back a few major media compaines expressed interest in buying YouTube–a site on which people are currently viewing about 100 million videos daily–  and Chief Executive Chad Hurley was clear that it was not for sale. But maybe Google–whose own videosite pales comparison to YouTube–is thinking of making an offer he can't refuse?

So, dear readers, what do you think is going on here? Is this hoopla and speculation? Or do you think this deal is being hammered out as I type? More soon.

By Caroline Palmer