YouTube Purchased by Google for $1.6 Billlion!

[Schnabel]

Has anyone heard about You Tube being purchased by Google yet? The story I go was that one year ago, the two guys that started You Tube didn't even have jobs, now a company of 65 people was bought by Google with $1.6 billion of Google Stock.
Here is a link to the article from ABC News .

Any thoughts on this?

[Joe Matt]

I think CD is worth about 3 billion in Google stock. Talk about one hell of a fundraiser!

[Hiteak]

3 Billion sounds a little low for CD, I could imagine a whole lot more.

[Conor Ryan]

Originally Posted by Hiteak

3 Billion sounds a little low for CD, I could imagine a whole lot more.

We're being Graciously Professional, and also business savy, if someone say...Rupert Murdock, wanted to pay more so he could own it, I'm sure we can start the bidding at 3 Billion.

[Greg Needel]

and lets see the lawsuits start rolling in. One of the things I have read and witnessed about you tube is the amount of copyrighted material that is on the site. Now when you tube was on it's own there was really no money to get since the company was worthless, with Google behind the steering wheel I predict that the law suits will start rolling in.

[Wetzel]

Originally Posted by Greg Needel

and lets see the lawsuits start rolling in. One of the things I have read and witnessed about you tube is the amount of copyrighted material that is on the site. Now when you tube was on it's own there was really no money to get since the company was worthless, with Google behind the steering wheel I predict that the law suits will start rolling in.

I disagree. Google already had Google Video, which also had lots of copyrighted content on it and they had yet to be served with a lawsuit. I don't see how Google is suddenly more vulnerable because they bought YouTube

Wetzel

[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?

[sanddrag]

Originally Posted by KenWittlief

The thing at amazes me is apparently Utube never made a cent of profit,

Really? All those pageviews on all those ads only cover operating cost?

[KenWittlief]

they did not cover operating costs. If they were not making a profit then they were losing money. They lost money from day one.

Someone invested cash to operate that business, and so far the only return they have gotten (now) is ownership of Google stock (still no cash back).

[KelliV]

I think it was an unintellegent decision on Google's part. It will get no profit from YouTube.
Being a Television Major I can say that if I found out that my work was being reproduced on this website and people weren't downloading from iTunes and I was losing money I sure as heck would call up my lawyers and sue google.
Becuase YouTube did not have the money I wouldn't bother with them, I would bother with google.

[[527]phil]

What annoys me is the fact that youtube is making money from other people's work, all they do is host the videos. And i have at least 12 videos on there, so wheres my cut of the 1.6 billion?

[Wetzel]

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?

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