How does a valuation like that come about? How does it make its money?
2006-10-10 20:07:37 · 7 answers · asked by Druantia 3 in Computers & Internet ➔ Internet
No, YouTube in its self is not worth the $1.65 Billion (800 million pound). Google is betting that they can make money off of the ads placed on the site.
The bigger concern for google would be avoiding copyright violations that I am sure are rampant on the YouTube site. They have already signed agreements with BMG and Sony music to try and head off some of the threats.
2006-10-10 21:12:18 · answer #1 · answered by John K 4 · 0⤊ 0⤋
It's all about advertising.
Is Utube worth $800m. No but then again most internet companies aren't worth the kind of money being quoted for them. Even Amazon doesn't make money.
2006-10-10 20:21:28 · answer #2 · answered by Mark G 7 · 0⤊ 0⤋
No of course not, real people know this but companies have images to protect so if Google didnt buy it then they would be seen to have a credible rival and there own business value would suffer therefore they had to buy it for loads of money so that "the market" can believe that Google is unique and very valuable too
2006-10-10 20:23:48 · answer #3 · answered by Steve 1 · 0⤊ 0⤋
Google will make an absolute fortune from online advertising on that site. It already has a huge user base and its getting bigger so companies will want to advertise on it. Google will make that 800m in no time
2006-10-10 20:11:19 · answer #4 · answered by poli_b2001 5 · 0⤊ 0⤋
They wont, tube were losing 25 million dollars a year and google have just taken a chance hoping they'll get the money back from advertising. Nothings guaranteed in business
2006-10-10 20:17:16 · answer #5 · answered by steve h 1 · 0⤊ 0⤋
i don't know why its worth so much, but its worth 1.5 billion not 8 million the price has risen because the people who own google have just bought utube for 1.5 billion.
2006-10-10 20:22:21 · answer #6 · answered by alex b 1 · 0⤊ 0⤋
Everything is about advertising.
They got the money from advertising.
2006-10-10 20:16:09 · answer #7 · answered by badtzadvice 2 · 0⤊ 0⤋