I would expect something like this from Google.  Looks like Google bought YouTube.  My fellow KMM author, Robyn Tippins is the source of this information.

"It’s being reported that YouTube is in talks with Google about a possible $1.6M purchase.  This was reported earlier by Michael Arrington’s TechCrunch as an unsubstantiated rumor.  However, it appears, according to the Wall St. Journal and BusinessWeek, that the talks are indeed ongoing (via ValleyWag).

If I recall correctly, last week the 1.6B number was being tossed around, perhaps even by Mark Cuban (but I’m not sure) - I know I did read that YouTube, if it were sold, would be worth about 1.6 Billion dollars.  Actually, that seems cheap and a low number - but when you consider the company was started less than two years ago - maybe that 1.6 Billion dollars goes into a couple of pockets.

A couple of things - 1) What happens to Google Video if Google now owns YouTube?  2)Is Google going to fight off all the copyright suits that appear to be in YouTube’s future?

One thing that makes a lot of sense - Google’s investment in high bandwidth Internet - it’s been rumored that Google is going to become a high speed Internet provider on top of everything else.  If you couple Google’s low overhead (because it would be the provider and therefore, delivery of high bandwidth video would be close to free) and extensive distribution network….that could make Google the entertainment company of the future along with the king of search.

Take that Yahoo!