At least that's what they are going for. Here's the story from today's NY Post:
Originally posted by New York Post
July 23, 2006 -- WHAT is a week at investment bank Allen & Co.'s annual Sun Valley confab worth?
For Chad Hurley, the founder of the hot online video company YouTube, it might be $400 million.
That's how much more he might get if he sold his company now - after he spent five days in the Idaho mountains being sucked up to by virtually every big-name exec in media.
Prior to the Allen & Co. conference, the word in the industry was that YouTube - barely a year old - could fetch $600 million if it were sold to one of the major media companies.
Now, following the Sun Valley excitement, the buzz is that Hurley and his backers have their sights set on $1 billion for the video-swapping site - which now streams nearly 100 million videos per day.
That figure would top the nearly $600 million that both News Corp. - the parent company of The Post - paid for MySpace and NBC paid for iVillage.
I've trusted my sites to them for over a decade...
I just hope to get in on all these old line media company's insanity before they spend all of their aquisition money. At some point they will figure out they are paying too much for hype.
I've trusted my sites to them for over a decade...
Youtube, at the rate its growing, will cost you $5 billions a year in bandwith bill. It's gonna take a lot of pop-ups and clicks on banners before those money is made back. Someone is gonna loose a LOT of money on that site, unless they buy it and use it to promote their own thing. Like a movie or record company.
It's worth way more than $1 billion. Since facebook is hoping to reach $2 billion - http://www.businessweek.com/technolo...327_215976.htm - and is 67th on alexa. YouTube however is 17th on alexa which means it should be more pricey.
It's worth way more than $1 billion. Since facebook is hoping to reach $2 billion - http://www.businessweek.com/technolo...327_215976.htm - and is 67th on alexa. YouTube however is 17th on alexa which means it should be more pricey.
I don't think any of this is just hype. The fact is that the internet is killing TV. This summer's TV ratings have been the lowest in history.
Once the technology is here to stream full screen high quality, you can kiss TV as we know it goodbye.
Good point, that doesn't have much to do with the overvaluation of YouTube though. That's for other companies, mainly the ones who own the content, to take advantage of. Read more on IPTV to get a full understanding of how that's to be rolled out on a wide scale over the next 5 years.
I've trusted my sites to them for over a decade...
It's worth way more than $1 billion. Since facebook is hoping to reach $2 billion - http://www.businessweek.com/technolo...327_215976.htm - and is 67th on alexa. YouTube however is 17th on alexa which means it should be more pricey.
Yep, investors just read the alexa data and cough up billions.
100 million x 20 megabytes average = 1953125 gigs used daily
So make that monthly and that's roughly 2 million mbps used per month ... am I wrong ????
Originally posted by rayadp05
I rebooted, deleted temp files, history, cookies and everything...still cannot view the news clip. All I see is that fucking gay ass music video from "Rick Roll". Anyone else have a different link to the news clip?
That's just rediculous. I don't see how they figure that it's worth anywhere near that. Sure it's a very popular site, but how do they plan on it generating such massive revenue? With the amount of BW that they go through, I just don't see it being as profitable as they would like us to believe. Just my .02
That's a good point. I don't know about you guys but it's looking like another bubble to me.
I was thinking the same thing... all these web properties have so many threats and weaknesses in their business models... not to mention myspace and youtube aren't making money.
at the current 1-3 million burn rate per month... perhaps it's worth it for a large content-player to acquire YouTube just to promote their own offerings and add them to their online empire simply to brand their other properties. Even at the billion dollar pricepoint, it "may" be worth the burn rate and buyout. Estimates say that youtube owns nearly 65% of the internet video download market... I can see FIM(NewsCorp), Viacom or IAC buying them out to augment their own site portfolio, or simply as a promotional vehicle. Getting the full billion is unlikely (today)... just positioning... this way when a buyer offers half that amount, everyone will assume they got a great deal.
and yes, youtube is easy to clone, no/low barrier to entry, etc... but bigger & better companies have tried and failed miserably (Gg,Y!, etc)... youtube owns the marketplace... for now.
perhaps newsCorp will buy it to use it as an incubator for new talent, show ideas, content, etc for their channels. you can already see signs of that with what they are doing with ksolo + myspace + american idol...
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