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Google

(GOOG) - Get Alphabet Inc. Class C Report

is in negotiations to buy upstart video-hosting site YouTube,

The Wall Street Journal

reported Friday.

The story, which cited a person familiar with the matter, said a deal could be valued at $1.6 billion. The report said discussions are at a "sensitive" stage and could break apart.

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YouTube, founded less than two years ago, has seen surging popularity, with users watching more than 100 million videos per day.

Last month, the company hired former

Yahoo!

(YHOO)

Treasurer Gideon Yu as its chief financial officer, heightening speculation that it might begin looking at deals or going public.

Shares of Google recently were up $2.10, or 0.5%, to $413.91.