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Open Categories Menu 1.65 Billion Dollars
- 10 October, 2006 -
- Online Media -
- Tags : Online Media, Video
- 1 Comment
Google has bought YouTube for 1.65 Billion dollars (that is $1,065,000,000 if you need to see all the zeros to realize how much it is) in a stock to stock transition. I wonder how many of YouTube’s 67 employees will be instant millionaires when the deal goes through? That’s right a company with 67 employees just sold for $1.65 billion. If you can’t tell, I’m having a hard time wrapping my brain around that.
I guess the reality of the situation is the value of the company isn’t a byproduct of those 67 employees. The value comes from the all of the user posted video and everyone that goes to watch the videos. To me that is a very transient value because users are fickle and easily chased off, but Google does have a track record of keeping users happy. It will be amazing to watch Google monetize the user videos and the audience from YouTube to justify their investment.
That’s true– most of YouTube’s value is in the videos that the users submit. That makes you wish you had thought of it, doesn’t it!