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Originally Posted by KenWittlief
How much is $1.6B of Google stock really worth?
this is not a trick question. If you own a large amount of stock in one company, and you start selling it, the price goes down. If someone tried to sell $1.6B of Google stock the price would drop, it could plummet.
The thing at amazes me is apparently Utube never made a cent of profit, but Google thinks they are worth $1B + ?
smoke and mirrors?
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Where I see the value is the deals they made with several major music labels. From the IHT, "YouTube reached deals on Monday with Vivendi's Universal Music Group and Sony BMG Music Entertainment that will let the Web site post music videos and content from users that includes copyrighted material in exchange for sharing ad revenue."
http://www.iht.com/articles/ap/2006/...rsal_Deals.php
In my kinda-informed opinion, Google bought not YouTube for their technology, but for the contracts they have with Universal and Sony BMG.
Wetzel