Granted, Google is at very high levels right now, but what are they going to be sued for? Undoubtedly there is still some litigation potential, but YouTube has been signing distribution deals with Universal, Sony, Warner, etc. What's more, by being part of Google, they will now be much more prepared to deal with these types of lawsuits without such an adverse effect on company value. YouTube might not be profitable yet, but investors certainly see this as a good move - the company has already gained $2 billion in market value from stock price growth since these rumors started a couple of days ago...more than they are paying for YouTube. EDIT: Here is the YouTube story for anyone interested. It's a good read. Amazing how little money has gone into actually developing this company...
I would gladly sit on the lockup of my share of $1.6b google stock for a year, I may see a huge decline in value but it's probably a pretty damned nice payday for the Youtube gusy even if google tanks.
^^Well it worked for Google because it already has litigation experience from archiving library books and its Gmail News Beta. Slapping Beta on Youtube won't work this time around, but they're obviously making their move into licensing and bringing big media into the fold. This is a buy that Yahoo should've made but hesitated to make.
I'm going to have to guess that even if Google gets hit, these guys will end up with more than $200 million. Don't feel bad for them.
being a bit of a traditionalist im thinking im not going to like the 'new YouTube' - it whatever form that takes. Sell your soul to the devil , the result is always hell. RIP YouTube. someone mentioned before they might stick ads before the videso to make it profitable...on top of that, if that happens, im sure there'll be a conscious effort by Google to make themselves "sue-proof" by co-operating wherever possible with companies to ensure their copyright material is protected. Therefore keeping us from our rare illegal footage
On the bright side, I think we could see more of these video sites come into existence in the near fuure. Hopefully with faster loads.. wait, my laptop just sucks
lol....not really....they had put in millions of dollars of their own money for the launch, etc ,etc......So give is millions of dollars and I think we could pull something off ourselves....Now will we get a billion plus in return....No!
Actually they probably didn't. It looks like Sequoia Capital was their big backer, with $3.5 million, though these guys did definitely put in some of their savings. Of course, that means Sequoia is taking a big chunk of the return for their investors, but I imagine these founders will make out very very well. However you look at it, from garage start-up to $1.65 billion in a year and a half is ridiculously successful.
No. They got venture funding from Sequoia, a famous VC firm that also funded Google. Started with $3.5 and then another $8 mil. They also got some money from CFO of PayPal, where they used to work. If you come up with a good idea you will get money. So now since you think you can make a buttload of money if you had a few million to start out with, go do it. All it takes is an idea. No? Oh well. Sounds like you're just like the rest of us
lol....yea So they didnt require any calateral, just here we love the idea...put us down for 3 mill.......sigh.....**************************
Equity funding, almost by default, lacks any kind of real, physical collateral, other than ownership of the assets you are acquiring, after paying off liabilities. Venture capitalists provide capital to start-up companies on the basis of extreme long-term growth potential. Even if there are 20 crappy $10 million investments, if the 21st $10 million investment nets you $1.65 billion in return, things are going ok ($210 million invested, $1.65 billion returned)...that's the general idea, though they'd rather each one of the 21 investments turn out so well.
wow so google is the devil now? crazy. and what were these guys supposed to do? not take 1.65 billion?
Dear Google, If there is anything you'd like to purchase from me, I will happily sell it to you. I know you have the money. Sincerely, Me
