Google buys another powerhouse…

Just about an hour ago, the Wall Street Journal reported that search engine powerhouse Google, Inc. was in talks to purchase YouTube. After this purchase is complete, which may not be for a few days as it is still in its initial stages and is still purely rumour at this point, it could add a significant boost to Google’s conglomerate as it would drive more users to sites owned by the company.

With 46% of all users going to YouTube in August compared to 23% going to MySpace and a dismal 10% going to watch Google Videos, this will definitely help Google’s cause to generate interest in high-speed videos on demand. The estimated cost for purchasing YouTube? $1.6 billion…in retrospect, $650 million was spent on social network powerhouse MySpace.

By Ken Yeung

Ken Yeung is a journalist fascinated with the stories of the tech industry and internet culture. He's currently the Technology Editor at Flipboard, where he observes what's happening in the space while also identifying new topics of interest. In addition, he co-hosts the weekly internet show "The Created Economy," which focuses on what's happening to creators and influencers. Previously, he was a reporter for VentureBeat and The Next Web, covering tech startups, the industry's innovations and funding. Ken also has a newsletter you should also subscribe to called "Filed."