I'm not sure why I'm posting this because at this point and the fact that this announcement was made a little over 24 hours ago - I'm assuming most of the world already knows that YouTube has been sold.
$1.65BB
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Has YouTube ever posted a profit?!?
Kudos, nonetheless!
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Profit? They barely make any revenues! This will be a defining moment for Google, one way or the other (incredibly genious on capitalizing while the site was pre-business plan, or incredibly stupid for paying for eyeballs like so many Web 1.0 stories trumpeted).
Yep they had no business model and yet managed to get loads of VC, and had no profits and yet managed a billion dollar sale... very odd. I guess people see video as a big part of "web 2.0".
I'm yet to find out why Google decided to buy YouTube. I figured Google was running fine with their own video site and purchasing a "content" site places them into a position where they're competing with other "content" sites (which is the reason they didn't buy MySpace).
Plus if Google put any AdSense onto YouTube there will most likely be a backlash that Google is making shit loads of money off other people's videos.
I think the reasons they may have bought it were:
1) To stop someone like Yahoo buying it and shoving there ads on it
2) To experiment with in-video AdSense of sorts (i.e. they can now mess around with new advertising models on a high-traffic video site)
cheers
nathan
Jarrett and Nathan -
I guess we'll just have to sit and wait and see what Google has up its sleeve. There's got to be some reason Google purchased them...
Oh there was definitely a reason - they believe that YouTube has collected a significant 'mindshare' market base that will be hard to usurp. And I'm sure they believe this fits neatly into their delivery of targeted advertising business model (and it probably does). The question main question: Will people leave YouTube if they're forced to watch inserted commercial content (my guess is yes)
This will directly affect whether Google can recoup the costs of paying royalties that they will be paying out to content providers with the ongoing deals YouTube is making. Time will tell, but I believe that snatching the company up at this price was outrageous.
I dunno...I still can't see why they were willing to shell out this amount of money for YouTube, other than to keep Yahoo! or Microsoft from capturing a potentially lucrative "partner".
I feel like online video feeds, like YouTube and sites like it, are short lived. It's like America's Funniest home Videos. Folks got a kick out of seeing strangers doing stupid things for only soo long. And then all of a sudden, the hosts were Bob Saget and the other Full House guy.
...you know your career is in a spiral when you're hosting someone elses bloopers - or a lame game show like 1 vs 100.
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