Yup, that’s right. The search engine giant Google has just bought YouTube for $1.6 billion in stocks. This was said to be google’s most expensive acquisition and yet youtube is still unprofitable.

This acquisition puts Google on top of the online video world.

You tube is founded by a 29 year old Chad Hurley (CEO) and 27 year old Steve Chen. Geez! These two are going to be multi-millionaires. Just proves that in the internet world, anybody with a good idea and good implementation strategy can also be multi millionaires.

Yuga has 3 points why he thinks Google bought YouTube. Apart from that, here’s what I believe google is going to do.

Google might be interested in adding 5,10,15 second ad clips in front of every video. Google already has google video adsense.  They have the technology to deliver those ads, servers and bandwidth. In doing this, they would initiate a new milestone in video ad distribution.

[via msn, yuga ]