Overhype

by Mike Masnick




YouTube Tries On The Skype Billion Dollar Buyout Plan For Size

from the hype-hype-hype dept

A year ago, we were amazed at how Skype's founders and investors more or less manipulated the press into claiming the company (which had made very little money) was worth $1 billion, then $3 billion just a short while later, only to end up at $4.1 billion only a couple months later. The numbers are hard to justify no matter how you look at it, but press hype (fed eagerly by the investors) worked like a charm until someone coughed up that huge amount. Earlier this year, it looked like Facebook was trying the same strategy -- except they started at $2 billion, despite the fact that their larger competitor, MySpace, was bought only a few months earlier for $580 million. It appears that $2 billion may have been a bit too high to start in this game. $1 billion works much better. So, almost exactly a year after Skype first pulled their $1 billion number out of a hat, here comes the press claiming that YouTube (with barely any revenue and huge bandwidth bills) is now worth $1 billion. How long will it be until we see that number jump higher and higher until someone drastically overpays? Perhaps instead of starting new businesses (that compete with YouTube), Skype's founders should just consult other hot startups on how to maximize the insanity right before selling out.

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  1. identicon
    Skibare, 24 Jul 2006 @ 9:02pm

    the Way to Capitalize is going to be Seen on Level

    youTube.com is one of 225 present Video Downloading NEW companies and most ride on the Level3 Network===check the Transport Numbers and INCREASE quarter over quarter!
    skibare

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