It looks like Michael Arrington’s report last night that Google is in talks to acquire YouTube may have been more than what he called “40% likely to be at least partially true.” The Wall St. Journal is reporting this morning that those talks are in fact underway, according to “a person familiar with the matter.” Journal writer Keven Delaney writes that the talks are in early stages and could break off. The Journal reported the same price tag that Michael did earlier, $1.6 billion. Hitwise, by the way, just posted some interesting traffic stats and discussion on Google Video vs YouTube. The gist of it is that YouTube is much bigger and growing faster and that Google sends lots of traffic to YouTube already, reportedly more than anyone but MySpace.