This deal is a total no-brainer for me if I’m Google. What most people forget is that the Internet (especially video search or social media, of which YouTube is technically both) is one big land grab right now. For all the crap they catch about their Betas, Google is a pretty intelligent incubator of products and technology. The cost of them buying this now and figuring it out as they go is a lot less than Yahoo, Microsoft, FIM, Amazon, Newscorp, IAC, or anyone else buying it and taking all those visitors and Adsense inventory off the market.
Shoe broke this yesterday and added a great synopsis of the deal today.
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