http://www.techcrunch.com/2006/10/06/completely-unsubstantiated-googleyoutube-rumor/ Rumored price is $1.6 billion. A quick phone call to a VC confirmed that the rumor is circulating (he also confirmed the price), but that is far from confirmation that this deal is happening. I believe this is a smart move on Google's part. 1) Google buys Youtube 2) Youtube and Google deploy video adwords ie- contextual/âvidtextualâ ads postroll, monetizing the content. 3) Google delivers Youtube via Appleâs iTV, to generate more revenue on their tv, what a novel concept. Also, lets say it is 1.6 billion. with Youtubeâs existing traffic and Googleâs ability to increase it, youâre saying Google canât return its investment within the first few years? Donât look at the 1.6 billion for what Youtube is today, but what Youtube will be once injected into Google. We were all once calling news corp idiots for buying myspace a year ago, now itâs a steal. Hats off to Google if they pull this off.