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Google is reportedly in talks to buy YouTube for over half a billion dollars in cash and stock. A couple thoughts on this item.

First of all, we all know that Youtube is much more popular than Google Video. If you’re reading this post, I can almost guarantee that you’ve visited Youtube or heard the name before. Quite frankly, I really hope that Youtube doesn’t sell out and cash in on the big check (granted it’s a big check).

Nice Tattoo.

But we all know that Youtube is still searching long and hard for a way to generate enough capital to sustain the constant increase of servers and bandwidth (among other things) needed to run their site — more than 65,000 video uploads a day! Sure, they had an initial funding allowance of $3.5 billion from Sequoia Capital and are probably still getting new funding today. But until they find that channel for steady income, things are still up in the air. Giving in to the Google would indeed be a solution to this issue.

Actually, YouTube’s current situation is remarkably similar to Google when they first started. Both companies had a great idea, implemented it, tasted great success… but didn’t really consider a way of generating income from their services. Perhaps soon we will see the Youtube equivalent of Google AdSense.

Will the Google Monster prevail?

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Tags: Google