People think Google is crazy for paying $1.65 billion for YouTube. Either because YouTube has a lot of illegal crap on it that makes it a litigation liability or because YouTube exhibits one of those dotcom boom flaws: lots of hits, lots of “cool,” but no business model for generating revenue. But don’t forget, Google isn’t paying cash for YouTube (even though they have $9.82b in cash). They’re using $1.65b worth of Google stock (all of Google’s stock today is worth $129.65b total). So basically those three ex-Paypal dudes from California that started YouTube now own 1.27% of Google. Anyway, if you aren’t bored to tears by now, my points are:
- Google currently owns $9.82b cash, and spends about $4.65b/yr. So if they don’t earn a single dollar for two years, they’ll still be better off than most companies.
- Google buying YouTube is a much better idea than that investment banker financial analyst guy you know that pops his collar, makes $60k/year out of college, and decides to buy a BMW or Benz.
benz sucks, but only we know that cuz we work at stupid digital media…
i want to own 1.27% of Google… dude i can retire early and live in hawaii working at dole plantation selling pineapple ice cream for the rest of my life ^^
wait wut… you never explained how google is going to monetize youtube. TELL MEEE