There’s a rumour flying around that Google is to buy YouTube for a whopping 1.6 billion dollars. Now, although this sounds like a massive amount of cash to you and me, if this was to be true, what’s in it for Google?

There is an obvious market for them to put ads on the YouTube pages, after all, most of Google’s revenue comes from Ads so they know what they are doing there. Also the copyright issues that YouTube currently has could probably be worked out.

I wonder how long it would take Google to recoup the $1.6bn if they did put ads on YouTube?

UPDATE: The deal has gone through, here’s the official press release.

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