Mark Cuban... Why I still think Google is crazy & YouTube thoughts...

A Message From Chad and Steve... Just a couple regular guys.
http://www.youtube.com/watch?v=QCVxQ_3Ejkg

Mark Cuban's take: YouTube deal opens floodgates to litigation
http://msnbc.msn.com/id/15198931/

GoogTube, the neutral network
Commentary: Google's biggest deal yet is its riskiest -- and smartest
http://tinyurl.com/qv4ek

Kinda a good business Lesson to Think about before Giving up a Share of $1.65Billion!
http://www.sowpub.com/forum/showthread.php?p=5979

Keep in Mind... Your business could be The Next Big Success

Phil

I particularly like the timeline.

Feb 2005 - 3 co-founders start work on site (1 later leaves)
May 2005 - public preview of site
Nov 2005 - launch of site
Nov 2005 - Sequoia (a Venture Capitalist) invests $3.5m
Apr 2006 - Sequoia invests another $8m (think they own 30% of YouTube)
Oct 2006 - Sold to Google for $1.65 billion

For Google, this effectively just buys them market share in the video space by taking them to >50%. Being the clear leader is a much better starting point if you're trying to negotiate with content providers to provide their content online, or if you want to set up an advertising business around it.

We won't really know if it pays off financially for them for a few years. In the worst case scenario where YouTube never makes money, it would only take 1-2% off Google's value given Google's size ($130 bil market cap vs $1.65 bil acquisition price).

[Dien Rice]

Originally Posted by Thomas Rice

We won't really know if it pays off financially for them for a few years. In the worst case scenario where YouTube never makes money, it would only take 1-2% off Google's value given Google's size ($130 bil market cap vs $1.65 bil acquisition price).

I found an interesting comment on a blog... One person points out that Google had "inside information" on how much YouTube was making, because YouTube was running Google AdSense ads. All Google had to do was look at the AdSense stats for YouTube to find out how much they were making from their user's clicks. So Google's AdSense is a "window" for them to "peer into" the profitability of any business that's running their program...

(The same goes for anyone using Google's advertising tracking tool, Google Analytics http://www.google.com/analytics/ ...)

So - Google probably knows more than any of us do, since it has (and always had) the inside info on YouTube!

I read that comment here (see the 2nd comment by "sivori") - http://paul.kedrosky.com/archives/20...ting_goot.html

Cheers,

Dien

[Dien Rice]

Originally Posted by Dien Rice

One person points out that Google had "inside information" on how much YouTube was making...

Actually, this reminds me of a quote (or actually, two)...

"The most valuable commodity I know of is information. Wouldn't you agree on that?"

"You want one more chance? Then stop sending me information and start getting me some."

Who said this? "Gordon Gekko" from the movie "Wall Street"! (Here's info on the movie and the script.)

Of course, in that movie, they use illegal means to get info and commit insider trading on the stocks of listed companies. However, Google (through AdSense) has legal means to get "insider info" to influence it's purchases... (And it's not dealing with listed companies too, which is another big difference.) It's all very, very clever!

(It makes me think of "Bud Fox" in the movie, and his "cleaning company" - which he uses to get access to important files to find out insider info. Google's AdSense is kind of like that - except it's all legal!)

- Dien

Dien,

Thanks for Sharing those comments...

Which makes a whole "Lotto" Google Adsense and Dollars.

Even for us little Guys because Frank Kern & Ed Dale which I'm sure many Know about...

Keep Talking about 'Buying & Selling' web sites...

And 2007... Being the year to Do it.

Keep in Mind...

It's Extremely easy to Verify Google Adsense revenue and Analytics in 'Buying & Selling' web sites...

As with any business investment...

Study and Learn from Experience who know the business well!

Frank Kern & Ed Dale
http://tubbynerd.com/category/buying-selling/

Phil