Holy Cow! Google buys YouTube

It looks like the rumor mill has been vindicated as Google buys YouTube lock, stock and barrel. This is their press release:

When the acquisition is complete, YouTube will retain its distinct brand identity, strengthening and complementing Google’s own fast-growing video business. YouTube will continue to be based in San Bruno, CA, and all YouTube employees will remain with the company. With Google’s technology, advertiser relationships and global reach, YouTube will continue to build on its success as one of the world’s most popular services for video entertainment.

It’s hard to say how this will unfold as YouTube’s revenues apparently suck at the moment. And that is no small feat when you consider Google shelled out a whopping $1.65 billion for it. Damn… wish I thought of it first.

Last I heard YouTube was still at the top of the heap for traffic, so perhaps Google knows what it’s doing after all. It also confirms how much the internet heavyweights are betting on video.

Maybe we’re heading towards another dot com boom where the bottom line takes a back seat to the next cool thing. It’s time to dust of that old camcorder and put the thinking cap back on.

UPDATE: How Digg and Google will transform Journalism and the Blogosphere. Jeff Jarvis also has an interesting take on the proceedings.