I read in The Evening Standard yesterday that YouTube made no money, but I also read somewhere else that YouTube employ/employed over 60 people, so they must have made some kind of money if they employed people?
2006-10-12 03:30:57 · 8 answers · asked by Matt G 1 in Business & Finance ➔ Corporations
1) No.
Most companies are funded by Venture Capitalists with millions of dollars and in the beginning they use that money to buy computers, lease offices and to pay all employees.
Eventually money starts to come in and hopefully one day the Venture Capitalist will get their money back.
Or like most companies in 2000 the bank account would be empty and the company will be closed.
In the case of YouTube Sequoia invested $3,500,000.00 USD back in 2005 and Roelof Botha invested $8,000,0000.00 USD a year later.
2006-10-12 03:50:42 · answer #1 · answered by Anonymous · 0⤊ 2⤋
They where putting money into the Dot Com.
Revenue from adv. helped pay workers.
The value of the company is in it's brand, not revenue.
I'm sure Google bought it with stock options, so it didn't even cost google.com as much as they paid.
Those two guys are RICH now.
2006-10-12 03:40:38 · answer #2 · answered by Scooby 3 · 0⤊ 0⤋
I think the point is that they ploughed all the money they made into the business and did not set aside a profit.
2006-10-12 03:36:13 · answer #3 · answered by Robert A 5 · 0⤊ 0⤋
Not a penny, they supported it financially with their credit cards until they sold all their advertising space to Disney to promote "pirates of the Carribean".,that only recouperated costs.
2006-10-12 03:40:10 · answer #4 · answered by manthintall 4 · 0⤊ 0⤋
made no money it was costing them about 1million a month to run
2006-10-12 03:44:23 · answer #5 · answered by Anonymous · 0⤊ 0⤋
it was in the paper yesterday,. they have not made money.
2006-10-12 03:44:52 · answer #6 · answered by refatr17 1 · 0⤊ 0⤋
no they didnt make money
2006-10-12 03:38:07 · answer #7 · answered by xstacy 4 · 1⤊ 0⤋
i bet they did make monkey because then how do they pay there employes.
2006-10-12 03:39:27 · answer #8 · answered by kurt c 3 · 0⤊ 1⤋