UPDATE: (Jan. 19) I am now 95% sure this rumor is innacurate after receiving yet more information.
UPDATE: (Jan. 18) This rumor is highly speculative at this point after reading additional emails I’ve just received:
Rumors are flying that Silicon Valley based YouTube (profiled here) has signed an agreement to be acquired.
Whoever the buyer may be, it’s not News Corp. They have confirmed directly to me it has not acquired YouTube.
YouTube raised $3.5 million in venture capital just three months ago from Sequoia. It was founded in February 2005.
Murdoch is really pushing it to get into web 2.0. I have also heard news several times that he is eyeing Clusty which interests me, due to the fact the I started a search engine, and am working on improving search in general. Thats great news for YouTube though. I’m Sure Sequoia is happy. (very quick payoff)
That was fast! Looks like others are taking a lesson from Google, buying up startups before they get too big and expensive.
I wouldn’t be surprised…. I wonder what their traffic is ???
The site is currently (12:40 AM PST) down because they are “rolling out new changes”.
Another one bites the dust!
These web 2.0 companies are being acquired at a blistering pace. I´m definately not surprised by the acquisition of YouTube as it would be a nice fit for several companies. It will be interested to see if any of this generation of startups will remain independent,go at it alone, and then become large enough to make it to IPO.
Any bets on who the suitor is?
If youtube is acquired, the price will be at least $150m.
@Jay: your are just kidding. A valuation >$15m. is not realistic. I mean, what’s their competitive advantage? being first and network effects to reach a critical mass. There are no real switching cost involved.
Yahoo seems like the likely acquirer to me - they need something to do battle with Google and this gives them that. Right now, of course, the majority of really popular content on YouTube seems to be copyrighted material, but Yahoo can bring relationships to bear make that content legally available. My take on valuation: between $30-50m.
Makes total sense given the amount of overlap between MySpace and YouTube users.
watch & learn. the real number will be even greater than $150 MM.
I am pretty sure I know who the buyer will be
It’s a real real good move for them too …
“Makes total sense given the amount of overlap between MySpace and YouTube users.”
That is the reason why they wouldn’t buy - if you already have the users, already have more traffic, then all you need is the technology - and that isn’t worth $150M. Think about it.
I doubt MySpace is the buying considering they just added their own video service: vids.myspace.com/index.cfm?fuseaction=vids.home
YouTube has MAJOR copyright violation issues (as do others).
It’s not going to be long before the legit producers and rightsholders come a knockin’.
You cant build a viable longterm biz on ripped off content.
“You cant build a viable longterm biz on ripped off content.”
Uhmmm….Google?
Greg:
It is very easy to navigate this. YouTube will be fine.
let me say this.. a lot of their content is ripped off, but its a lot better than say revver, which is super sensitive about all of their content.
I have access to about 50,000 funny home video clips, cleared worldwide, which might help facilitate a YouTube sale!
By the way, I am not a naughty little blogger, but rather, the VP of the worlds leading clip distribution company, MEDIA ENTERTIANMENT GROUP, (Megnetwork.com)with headquarters in Scandinavia. Were the kind of folks that believe “content is King”.
By the way, I am not a naughty little blogger, but rather, the VP of the worlds leading clip distribution company, MEDIA ENTERTIANMENT GROUP, (Megnetwork.com)with headquarters in Scandinavia. Were the kind of folks that believe “content is King”.
There is possibly no competitive advantage for Youtube beside doing it perfectly and doing it right the first time which is an instant attention getter. The site is big and could be formulated to instant content delivery wizard. The first thing comes to my mind as an advantage for online content delivery is the stats, very useful stuff for the amount of people using fast, slow, medium internet connections capable to view their online video trailors recently they started delivering. How come? possibly looking for a more Apple.com/Quicktime/trailors site? Nope. With this one it all come to potantial stats and how many people are interested in purchasing video clips which is only possible if you have a HUGE archive and deliver on small percentage of profits. It can be done, yes this site has potential that can EASILY wipe out almost all video content generating websites if done properly. What YouTube shouldn’t do is sell it or sell it now. The site will create almost double the value within the next two years if they continue delivery. Once it is taken over, the hostile nature for profits will ruin the pure fun of video uploads and even a Single Purchase/Buy link will increase Viewer Defection. So what is the potential? Tremendous. If YouTube is sold then YouTube guys never realised their own power.
You can’t believe all these rumours! You’ll be telling us Google has bought it next! In all sincerity though, have you heard the rumour about Alexa being in the Google firing line?
Karaoke Kev
http://youtubekaraoke.blogspot.com
Now it’s finally happened and the ‘big G’ has a foot in the YouTube empire I hope we don’t see a load of ads all over the YouTube site. I can imagine Google wanting to plaster ads all over the place to earn some quick dollars.
Tom
http://tomjacksononline.blogspot.com
fuck u