PC World reports that Google is about to acquire YouTube for $1.6 billion. Although this is just a rumour, sources close to YouTube say the deal is in the final stages.
It will be interesting to see how YouTube will change and if Google Video continues to exist after the deal.
In September, YouTube had a market share of 46 percent in the U.S., while Google Video had only 11 percent, so the deal will bring a lot of new users to Google and a revenue source to YouTube.
Update: Now it's official. "Google announced today that it has agreed to acquire YouTube, the consumer media company for people to watch and share original videos through a Web experience, for $1.65 billion in a stock-for-stock transaction. Following the acquisition, YouTube will operate independently to preserve its successful brand and passionate community."