YouTube Won't Sell For Less Than $1.5 Billion 178
Joel from Sydney writes "According to a report in the New York Post, YouTube has informed potential buyers it won't be sold for anything less than $1.5 billion. The report lists Viacom, Disney, AOL, eBay and News Corp as potential buyers. Given that News Corp purchased MySpace last year for $580 million, is this a realistic figure?" From the article: "YouTube's stated business model is to 'pursue advertising,' but potential advertisers might be skittish considering industry estimates that roughly 90 percent of the content viewed on its site violates copyright laws. And at least one giant, Universal Music, is threatening to sue the company if its artists' songs keep appearing there. As it tries to focus on videos that don't use content owned by media companies, it yesterday launched the YouTube Underground, a contest to 'discover the most talented unsigned bands and musicians on YouTube,' backed by Cingular Wireless, Gibson Guitar and ABC's 'Good Morning America.'"
Web 2.0 ... (Score:2, Interesting)
1. Create service
2. Get other people to violate copyright with your service
3. Avoid Lawsuits
4. ???
5. Profit (or at least $1.5B)
I'd really love to have seen their pitch to any VC firms
If you consider Yahoo buying Broadcast.com.... (Score:5, Interesting)
The price is huge, but it's not out of line with web-based social properties. Not that it's fair.... but the future revenues if it's managed well could be very big.
It will go the Napster, Kazaa, eDonkey way (Score:5, Interesting)
Really, enjoy it while you can, because the record companies will sue YouTube into the ground. Soon.
So this company will not be worth anything in a year.
Re:Realistic? (Score:3, Interesting)
I'd assume that content would always surpass the value of distribution, but maybe that's what's changing.
Sheeeesh... it would take that much just to (Score:5, Interesting)
Re:Web 2.0 ... (Score:5, Interesting)
Wow, now its a 5 step plan, pretty soon 12
Yeah, we all laughed at the sock puppet and the Superbowl ads, but there is still mega-profit in the
The coolest thing is that I heard on the news the other day where people at the other megacorps are realizing that there is profit in copyright infringement. Madonna's people are OK for uploaded stuff on youtube because they realize its free advertising. Much like the bands that allow taping of their concerts (we are looking at you Bob Weir). Who knows, maybe we can soon buy music in unencumbered digital formats at real market value. Maybe.
Re:Web 2.0 ... (Score:2, Interesting)
Broker: Sure we'll insure your car.
Client: Great, how much?
Broker: $100,000 for this year.
In other words, we don't want your business, but we don't want to tell you to your face. We'll just make our offer so astronomically high, you'll go quietly away.
Saying that, shouldn't they have made their figure $3 billion or something. £1.5B seems like they might get a bite.
Re:1.5 huh (Score:3, Interesting)
Dear Mr Murdoch song by drummer from Queen (Score:2, Interesting)
Roger Taylor (The drummer from Queen) wrote an excellent song about Rupert Murdoch, to be found on his 'Happiness' album.
Check out the Lyrics
Overpricing with no intent to sell (Score:3, Interesting)
I had that experience myself, asking once for about 5 times the regular price on a service I really didn't want to execute. Guess what ? They said yes.
Moral of the history: if you are going to overprice so you get a "no", make sure your price is so high there is absolutely no chance they will say yes.
I should have asked 20x, not 5x. YouTube should be asking for $100bi is that is what they want (not to sell).
Pretty rich valuation (Score:2, Interesting)
Re:1.5 huh (Score:1, Interesting)
The time is right to sell it (Score:3, Interesting)