Thursday, October 12, 2006

Why YouTube was worth $1.65bn for Google

Price is what a buyer is willing to pay to acquire something. When it comes to company valuation it is particularly tricky to be sure that the price is right, particularly when the assets are essentially intangible. The situation is even worse when all a company has is "users" and no business model. Many people think Google acquisition of YouTube was a pricey mistake and it's probably worth reconsidering the position in the light of some interesting facts provided in this post that I got from Digg. And in fact it confirms the indications we had so far that one of Google's key strategic objectives is to control as much Internet traffic as possible. Now what remaisn to be seen is what the impact of copyright related legal procedures will be, especially if Google manages them as casually as they managed their recent case against Copiepress in Belgium.

read more | digg story

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