Google in negotiations to buy YouTube for $1.6bn

Google is in talks to acquire video-sharing website YouTube in a $1.6bn (£857m) deal.

The deal between the companies is expected to be concluded this week. It could mean that Google's online ad program AdWords is rolled out across YouTube.

While all eyes have been on the site and potential acquisitors, one dotcom investor, Mark Cuban, has said that anyone paying for YouTube is a "moron" because the site would be "sued into oblivion" for infringing copyright.

However, there are signs that the record labels, whose videos appear on the site, are more interested in working out how they can use it to market their artists and make money, rather than risk incurring the wrath of the millions of members who are used to getting stuff for free from the internet.

Microsoft and Yahoo! are each trying to emulate the success of YouTube with their own video websites. Microsoft has launched Soapbox and Yahoo! Video made its UK debut last week.

More at Brand Republic

Addition 10/10/06: Google has put an end to speculation by agreeing to buy video-sharing network YouTube.com for $1.65bn (£884m) in a stock deal. More

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