Was YouTube Worth The Money?  

Posted by thomas_byllaardt in ,

Friday marked the third anniversary of Google's purchasing of YouTube for $1.64 billion. Though this past Tuesday Google head Eric Schmidt admitted he overpaid for Google by around $1 billion (^1). The question remains, for a company with very little revenue why did Google pay that much for it? Schmidt's attorney, Stuart Jay Baskin, said "they (YouTube) had indicated to us that they would be sold, and we believed that there would be a competing offer."(^2) Basically if Google didn't, someone else would have.

(^1) http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=114946&passFuseAction=PublicationsSearch.showSearchReslts&art_searched=&page_number=0

(^2) http://mashable.com/2009/10/06/google-youtube-1-billion/

1 comments

Anonymous   says October 12, 2009 at 12:22 PM

I agree with Mashable in that the acquisition of YouTube was worth it, even if it was overpaid. YouTube does not have many other competitors, so Google has a great advantage just by owning it. YouTube could also implement other programs for creating revenue which could help make a larger return on their investment.

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