Monday, October 09, 2006
Google Gobbles Up YouTube for $1.6 BILLION
Now I'm not going to go into all sorts of crazy details like the rest of the blogosphere will undoubtedly do, but I will make a few points and ask a few questions.
Google gives these two 20-something year olds $1.6 BILLION in Google stock. Now to put that into perspective you can take out the 30% that Sequia Capital owns and these two guys get to split up *que Dr. Evil* $1.1 BILLION DOLLARS. Imagine starting your current company a year ago and having someone buy it for over a BILLION dollars. I can't even imagine. Well, yes I can, if you have a spare $1.6 billion laying around, I can come up with something to sell.
I digress. Now this is an all stock deal so that $1.6 BILLION DOLLARS (saying that never gets old) could go up or *gasp* even down. For example. Let's say a meteor hits Moutain View, CA and Wall Street thinks that Sergey and Larry have perished under atmospheric rock, the Google stock tumbles, falling 25%. YouTube-Teens only get to split $825 million. I can barely hold the tears back.
Ok, so these two guys have $1.1B to split, they could buy MySpace, TWICE! For those who don't remember Fox bought MySpace.com just over a year ago for $580 million. A blockbuster deal at the time for sure, but that is less then ONE THIRD of what Google is paying for YouTube only a year later. Wow! is right.
There have been a lot of voices speaking out on this suspected but no one has been a bigger advocate of the 'Do Not Buy YouTube' theory then Mark Cuban. Cuban is the first among the blogosphere to put up his reactions to the acquisition and it doesn't disappoint
Mark Cuban states "It will be interesting to see what happens next and what happens in the copyright world. I still think Google Lawyers will be a busy, busy bunch. I dont think you can sue Google into oblivion, but as others have mentioned, if Google gets nailed one single time for copyright violation, there are going to be more shareholder lawsuits than doans has pills to go with the pile on copyright suits that follow."
It will be intersting to see how the rest of the blogosphere reacts, but we will probably have to wait until tomorrow for that.
By Matt O'Hern at 04:41 PM | Comments (2)