YouTube gets snapped up for a bargain...

Albie

Keeping an open eye on the Weeping Angels.
So, YouTube is sold for $1.65bn (nearly £900 million). Imagine the scenes as the deal is hammered out:

Google: We will buy YouTube for $1.5bn

YouTube: Hmm, I was thinking more in the lines of $2bn. I mean we can't let it go so cheaply.

Google: $1.65bn and you have a deal.


Not bad for something that started in someone's garage 18 months ago.
 

IronDuke

Ancient Mariner
I really don't understand this.
You Tube has never, not once, since it went online, EVER turned a profit. It loses money. It has very few physical assets. It's based on outmoded technology, and it has stiff competition from Google itself, and other similar sites.

And yet it's worth this much?

On this same note, where the heck is Google getting the money to buy stuff? Nobody pays a cent for their services.  The revenue gained from placing ads isn't that lucrative. They'd need to pay out SO much to affiliates (like Maidenfans!) to gain this much capital that the internet would be a much different medium of communication than it is. There'd be hundreds of thousands of sites swimming in money.....and there is not.

So, that leaves investor money form their stock selling. In that case, it's a case of fraud matched only by Enron. Google is junk stock, by my reckoning. They have no plan to actually generate profits, yet they continue to make their numbers rise and rise.

It's all a bit too fishy.
 

Genghis Khan

Ancient Mariner
That is an interesting point Duke.  I can't say that I know the ins and outs of Google or any company, but "creative bookkeeping" has been a bit of a problem in the corporate world lately.  It is like my sig. quote says: "Corporation, n.  An ingenious device for obtaining individual profit without individual responsibility." - Ambrose Bierce

Hopefully, someone will explain this to us.  It would be a shame to lose Google. 
 

Onhell

Infinite Dreamer
Honestly I have no idea how any website with free services be it google, facebook or wikipedia stay afloat. They claim that it is all from advertisements and since IN THEORY they are exposed to billions of people that kind of exposure must pay well. I mean, an ad during the superbowl is worth millions of dollars... that could be how/why.
 

Genghis Khan

Ancient Mariner
Onhell said:
Honestly I have no idea how any website with free services be it google, facebook or wikipedia stay afloat. They claim that it is all from advertisements and since IN THEORY they are exposed to billions of people that kind of exposure must pay well. I mean, an ad during the superbowl is worth millions of dollars... that could be how/why.
Maybe Google has wardrobe malfunction advertisements as well.  That could generate a lot of dough.  :bigsmile:
 

SinisterMinisterX

Illuminatus
Staff member
Onhell said:
Honestly I have no idea how any website with free services be it google, facebook or wikipedia stay afloat.
Wikipedia stays afloat via contributions from users. There's a link in the top right corner of every Wikipedia page, the target whereof explains this.
 

Albie

Keeping an open eye on the Weeping Angels.
Google has sponsored links, as you would be aware of - they will pop up on almost every search.
 
A

Anonymous

Guest
I fear for the future of YouTube... it may become overridden with advertisements and possibly be only available to paying members.

I suppose there will always be a competitor on the scene, the internet is such a fickle place, YouTube is merely a fad ;)
 
A

Anonymous

Guest
Onhell said:
Honestly I have no idea how any website with free services be it google, facebook or wikipedia stay afloat. They claim that it is all from advertisements and since IN THEORY they are exposed to billions of people that kind of exposure must pay well. I mean, an ad during the superbowl is worth millions of dollars... that could be how/why.
And that's how it is for Google. I suppose the various incarnations of Google put together get billions of hits daily, and I think if even a tiny fraction like 0.001 per cent of those click on some links, they already get their revenue.
 

Genghis Khan

Ancient Mariner
Albie said:
Google has sponsored links, as you would be aware of - they will pop up on almost every search.
I can understand this method.  It is like this BB getting some funds by putting ads in the middle of threads.

SinisterMinisterX said:
Wikipedia stays afloat via contributions from users. There's a link in the top right corner of every Wikipedia page, the target whereof explains this.
I have seen that link.  I wonder how many do contribute funds... I guess those that post on it and find their intellectual self-interest satisfied.
 
A

Anonymous

Guest
Yeah, like me clicking on "Clairvoyant Numerology".

Some of those ads just crack me up  :bigsmile:
 
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