A Wall Street Journal article is reporting that Google is in talks to acquire YouTube for approximately 1.6 billion dollars. Never mind that the site doesn’t actually SELL anything … never mind that it’s entirely ad driven.. never mind that it’s a money sinkhole because of it’s insatiable needs for servers and bandwidth.. it’s all about the eyeballs!!

So here we are again – in a world that feels somewhat similar to the late 90′s (minus the IPOs of course) where companies were outrageously valued for producing actually nothing at all. Of course Google has all the money in the world so hey – it’ll be an easy acquisition. (yeah right.. I’m betting that they’ll need to tighten their ship a little based off of this report here).

Of course, Google isn’t the only show in town right now as Yahoo is also interested in purchasing YouTube (but no one knows for how much). Yahoo has also been busy with possible acquisition talks with the folks at TheFaceBook.com.

But consider this. If Google is successful in acquiring YouTube, then it will have arguably the single largest collection of videos on the Internet. They’ll have a massive video index of what’s available on the Internet AND they’ll be able to monetize on that by offering video searching capabilities that will probably find everything on the net b/c they store all of it. So you make the videos (or a company makes the videos and someone else uploads it) and Google ends up making money off of you. What a model.

Of course.. I’m just insanely jealous of the 1.6 billion value.

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