2006-10-31 11:31:34 · 7 answers · asked by noseque1984 2 in Business & Finance ➔ Corporations
They bought it because of all the eyeballs that view Youtube. They will be enhancing the ads on it. As for the amount, it's the same way a price is determined for anything: negotiation between buyer and seller.
2006-10-31 11:41:52 · answer #1 · answered by Oliver1010 3 · 0⤊ 0⤋
The price of the deal was evaluated on the basis of the 2 things:
1. Googls prediction of how much revanue they will earn with the product of the You Tube.
2. Buyers and Sellers Bargenning.
2006-10-31 11:45:51 · answer #2 · answered by bunty s 1 · 0⤊ 0⤋
Why Google bought Youtube?
1. time advantage gained rather than beefing up its own video unit. A quick way to tap new market potentials
2. gain massive "clicks" to increase ad revenues
3. buy out a potential rival
How Google valuates the purchase?
1. current value plus PVGO (potential value of growth opportunities)
2. Much of it will be classified as goodwill.
However, the $1.65 billion is essentially used to pay the owners of Youtube, rather than the actual value of the company. Youtube, reportedly, is still in the red!
2006-10-31 14:16:19 · answer #3 · answered by Anonymous · 0⤊ 0⤋
expected value vs risk from the side of google, and from the side of youtube because the owners think that they make the most possible value at a certain time and space for that product. Economics 101. If you want me to explain it more It will take me an essay.
2006-10-31 13:19:42 · answer #4 · answered by Pierrot 2 · 0⤊ 0⤋
After this, all you can do is iterate and repeat. Go back to the first step and start looking into other problems. Visit https://bestsocialplan.com
2014-09-05 01:28:46 · answer #5 · answered by Anonymous · 0⤊ 0⤋
They discovered with disappointment that clicking any option that allowed advertising did not guarantee a steady stream of revenue. https://bestsocialplan.com
2014-08-01 18:48:13 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Investment/ highest bid.
2006-10-31 12:08:44 · answer #7 · answered by Luckys Charm 4 · 0⤊ 0⤋
Investment/ highest bid.
2006-10-31 11:39:26 · answer #8 · answered by Jerse 3 · 0⤊ 1⤋