Did YouTube Cost Less Than Nothing?

Posted by John Carney, Oct 12, 2006, 10:02am

googtubelogo3.JPGWe pointed out the other day that Google had bought YouTube for about 1% of its equity. The Big Picture takes the analysis one step further, noting that after the rise in Google's share price following the acquisition, Google essentially picked up YouTube for free.

And if the stock keeps climbing, well, then Google picked YouTube up for less than nothing. The market is paying Google to buy YouTube.

Google Buys YouTube -- for Free [The Big Picture]

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Posted in: Companies, Google, YouTube

Comments

Posted by Tim Carney, Oct 12, 2006 10:20AM

I don't see why this is weird. We have peapod deliver us our groceries, and we pay peapod like $6 to buy our groceries for us. I pay my borker to buy stocks for me. Investors just paid Google a few million to buy YouTube for them.

Google is like a personal shopper.

Posted by joe, Oct 12, 2006 7:21PM

i'm pretty sure you're being tongue in cheek because obviously the ROI of an investment isn't determined in 5 days. let's check back in 2 years and see what sort of incremental profit YouTube is generating for the 1.5% of the company that GOOG gave away.

Posted by thebear, Jan 28, 2008 12:46PM

Google keeps buying everything. Soon they'll buy Microsoft.

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