NEW YORK (CNNMoney.com) -- The online search giant Google Inc. is in talks to purchase the closely held Web sharing sensation YouTube for around $1.6 billion, according to a report published Friday.

Citing a person familiar with the matter, The Wall Street Journal reported that the companies are currently holding talks, but that discussions are at a sensitive stage.

"We do not comment on rumors and speculation," Google spokesman Jon Murchinson told CNN.

A YouTube spokeswoman also said the company doesn't comment on rumors or speculation.

YouTube, based in San Mateo, Calif., allows viewers to upload and share video and it estimates that over 100 million videos are watched everyday .It has been speculated that the privately held company would be sold or taken public - although one critic, Internet start-up developer Mark Cuban, was quoted as saying anybody who buys YouTube "is a moron."

While the company has been criticized for allowing users to post copyrighted material on its Web site, YouTube inked a partnership with Warner Music Group (up $0.49 to $26.94, Charts) last month to distribute music videos and artist interviews.

The respected Silicon Valley blog Techcrunch first reported rumors of Google-YouTube deal earlier today.

Google (up $8.96 to $420.77, Charts) shares were higher in afternoon trading on the Nasdaq exchange as were shares of rival Yahoo (up $0.22 to $25.40, Charts).

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Mark Cuban: Only a 'moron' would buy YouTube