YouTube Denies $1 Billion Valuation, But Okay with $600 Million

from the overshooting dept

Earlier this week, a number of stories with the phrase "$1 billion" in close proximity to "YouTube" were winding their way through the media, after the company was apparently the belle of the ball at Herb Allen's annual Sun Valley rich-guy schmoozefest. It seems pretty clear the unprofitable company (with no appearance of a business plan) isn't worth anything near that, but all the better to fit the Skype Billion-Dollar Buyout Plan, which is based more on hype than business sense or financial performance. But YouTube's founder is clearing the air in an interview with Marketwatch, where he "brushed aside reports that the value of the company jumped to $1 billion from $600 million because of his appearance at the Allen & Co. confab". It's not clear, but the writeup makes it sound like he's okay with a $600 million valuation, but $1 billion, well, that's just ludicrous. Wow, such modesty -- a new face to the media-driven buyout plan, maybe one a willing buyer will reward with another $400 million.

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  • identicon
    Yet another Anonymous Coward, 28 Jul 2006 @ 11:44am

    Now the best value tube of the Internet!

    reply to this | link to this | view in chronology ]

  • identicon
    Anonymous Coward, 28 Jul 2006 @ 1:22pm

    Please change this to the "One born every minute" department . . .

    reply to this | link to this | view in chronology ]

  • identicon
    fsckr, 28 Jul 2006 @ 1:31pm

    Based on??

    I'm not sure I get it, what is their valuation based on?

    Their millions of users?? Well I have thousands of users on my site. Can I claim its value as being in the millions? Probably not. So what I want to know is: why the elevated valuations?

    reply to this | link to this | view in chronology ]

  • identicon
    tehdirtaddict, 28 Jul 2006 @ 1:37pm

    The internet is a series of tubes

    if 1 is worth $600 million, how much are worth therest :D

    reply to this | link to this | view in chronology ]

  • identicon
    You people are all wrong here..., 28 Jul 2006 @ 2:53pm

    They are worth 2 Billion. The future potential of youtube is the sky.

    Get a life and learn to recognize a bargain when you see one!

    reply to this | link to this | view in chronology ]

  • identicon
    dude, 28 Jul 2006 @ 3:24pm

    I like beer

    reply to this | link to this | view in chronology ]

  • identicon
    Anonymous Coward, 28 Jul 2006 @ 5:13pm

    Sex Kills!

    reply to this | link to this | view in chronology ]

  • identicon
    Sean, 28 Jul 2006 @ 7:04pm

    Wow

    I'd love to be that guy. Though I can see how they valuated how it's worth 600 million. With how many users there are you could basically put some ads up there and make them pay millions of dollars just to put them on.

    That's my two cents.

    reply to this | link to this | view in chronology ]

    • identicon
      thecyrusvirus, 29 Jul 2006 @ 7:21am

      Re: Wow

      Two cents is about what i'd pay for an ad on YouTube. Lots and lots of their video content is streamed and played through other sites and links in blogs so a large proportion of youtube bandwidth isnt even from site visitors.

      They have no real target demographic or niche market so ads there will have a minute click-through rate and be to all intents and purposes pointless.

      Anyone willing to pay large sums for ads on YouTube would have to be head shot

      reply to this | link to this | view in chronology ]

  • identicon
    Lord Gauron, 29 Jul 2006 @ 5:19pm

    They could have ads in their video streams. Before the "real content".

    reply to this | link to this | view in chronology ]

  • identicon
    Fire Isiah NOW and save us, 30 Jul 2006 @ 3:32pm

    The longer they fly solo

    ...the more money they will burn. The larger their viewer base, the more money they will burn. There is no economy of scale here. If the big media houses don't buy youtube out (but set up their own video sites)...then youtube is SOL. How many more years can the VCs fund them? 1 million dollar burnrate a month is what I heard. Let this sucka fly solo for another year...then we'll see it crash.

    reply to this | link to this | view in chronology ]

  • identicon
    eric martin, 31 Jul 2006 @ 2:08pm

    Youtube is worth $500 billion !!!!

    Easily !

    Everyone loves crappy low res macromedia flash movies !

    reply to this | link to this | view in chronology ]


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