$1.6B? For YouTube?
sputter. sputter.
Mark Cuban says it well http://www.blogmaverick.com/2006/10/09/i-still-think-google-is-crazy/
$1.6B for a lot of eyeballs is basically what they're paying. The question is what the eyeballs are worth. Youtube has approx 20M users, which means goog needs to eventually make back $80/user to break even, plus the future value of the money. A really tall order. Can you say "Web 2.0 Bubble"?
I have friends at goog, and it appears to me that goog is a little bit insane. Sometimes that can be a good thing, but in this case it feels like they've just got too much money and are living the bubble.
Another theory from the Gerstner (IBM) book. Sometimes when an exec is faced with a very tough challenge, a merger or acquisition looks really good because it's concrete, exciting, and holds analysts at bay for a while. The gang a goog certainly are facing just such a challenge in goog's slowing growth.
We'll see. This appears less nuts than the warner/aol deal or the ebay/skype deal, but it's up there.
9 Comments:
Aparently Google investors think the YouTube deal is a good thing. Didn't Google stock rise like 2 percent yesterday?
actually, youtube has far more than 20m users. last months comscore data shows 35m uniques in the US alone. another 5m in the uk etc and you get the picture.
Hi David, I would like to ask you a few questions regarding the Zune for my website, ZuneUser. How would I go about contacting you, and do you have time to answer them?
Thanks,
Omer
P.S.: Sorry about the double comment, just wanted to make sure you got it.
Seems to me that Microsoft wanted to buy YouTube.
So Microsoft has changed their tune now that Google aquired YouTube?
Whatever.
Google learnt from its mistake. it wanted to buy MySpace , but they didn't want to spend 500 million USD on it. and google was arrogant and decided to develop googlepages on their own for few million USDs. and the rest is the success story of News Corps.
This time they didn't want to do the same mistake and loose the mileage and any ways , google video sucks .they can only reach top slot and be in limelight , if they buy the direction less YouTube.
I believe , MS has also done a mistake of not buying YouTube and starting its own soapbox.
MS has to develop new strategies for WEB.
hey, I never wanted to buy Youtube.
it's a bubble. most companies are worth buying, but at a price. the prices are insane right now.
agree just building a youtube competitor would be tough to make work; the traffic won't necessarily come. but it's equally not clear to me that the traffic to sites like this is sustainable; is it a long term sticky service or a current fad?
Hi David, I was just wondering when is Zune arriving in Australia? Is there any offical date confirmed, thanks
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Hey David...now that I know many of the features that the Zune is launching with, I decided to brainstorm some features I would like to see in future iterations of the firmware or Zunes...
I was wondering if you could take a look at them, as I'd love to help make the Zune a great player!
http://zunelicious.blogspot.com/2006/10/zune-wish-list-hey-everyone.html
(if the link dosn't fit just go to www.zunelicious.blogspot.com ) and look for the Zune Wishlist)
Thanks,
-Charlie
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