Source: webpronews.com

The search engine Google Inc. (Google.com) is reportedly in talks to purchase YouTube Inc. (YouTube.com) for about $1.6 Billion.

The Wall Street Journal reports that the two companies are holding discussions, but are at a sensitive stage in talks right now.

"We do not comment on rumors and speculation," said Google spokesman Jon Murchinson.

YouTube allows visitors to upload video files and share them with viewers from all around the world. It’s estimated that over 100 million people view these videos every day.

Several online marketers have adopted YouTube as a medium for advertising their products and services through promotion oriented video clips. Some videos are blatant advertising while others are more subtle. A search on YouTube for videos uploaded by Chris Pirillo, formerly of TechTV, yields several examples of a company capitalizing on the social media phenomena by providing short blooper out-takes from the TechTV show and other more personal and less commercial adventures.

In the past YouTube has been criticized for allowing users to post copyrighted material on it’s website but that hasn’t stopped YouTube from signing a deal with Warner Music Group to distribute and host music videos and artist interviews.

When Google has bought a company in the past it’s usually been with the intent to some how fold the new company into Google’s current product and service offering. How Google intends to do that with YouTube remains to be seen. However it is likely to make YouTube even more attractive as a online marketing medium if the proposed purchase is finalized.

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