Here are my initial thoughts on the deal:

1) YouTube is the first startup to ever build a billion dollar valuation based on Romanian pop music, lonely girls and dancing cats (and, oh yeah, the Simpsons, Jon Stewart and South Park).
2) YouTube is selling because it has drawn in a huge audience but needs help monetizing it from the experts. (i.e. Google)
3) Google is taking its mission of organizing the world's information to online video with this deal.
4) Next up is Facebook, which could benefit if it moves quickly to secure a sale to Yahoo.
5) The trio of YouTube licensing deals announced today is designed to limit the 'Google is Buying a Lawsuit' chatter.
6) Sequoia Capital, which has invested $11.5 million for about 30% of YouTube, is doing really, really well. and may have finally usurped Kleiner Perkins Caufield & Byers as the top venture capital firm.
7) The uncertainty for Google centers on its ability to monetize video, which no one has really figure out how to do.
8) This is the clearest admission yet by Google that it's maturing and it can't build everything on the web itself.
9) Where is Microsoft in all this? It has more cash and a higher market value. If it's really dedicated to the web, why not outspend Google for YouTube?
10) Old media companies such as Viacom and NBC are going to be left with scraps since they don't have the muscle to buy a leading social networking or online video site.

For more on the $1.65 billion Google acquisition of YouTube, see:
Google's press release
Bloomberg

Tags: google, youtube, cnbc, vc, venture+capital.