Breaking News: Google buying YouTube?

Yesterday, Micheal Arrington over at TechCrunch reported it “40% likely to be atleast partially true” that Google and YouTube were in acquisition talks and the price tag was in the $1.5-$2 Billion range.  Well, this morning saw more fuel to the rumor with The Wall Street Journal reporting talks, although very preliminary and “could break off”,  are indeed underway and suggesting the same price tag.

If this is true, it would finally make Google a major player in video.   Up to this point, YouTube continues to grow in video content and popularity far ahead of Google.  At the same time, it hasn’t looked like YouTube has been able to turn popularity into profits.  Why not sell to the hungry giant?