YouTube made $15 million in revenue last year
News: Ellen Lee has an excellent article on “Google moves YouTube ahead: since the acquisition, more deals struck with video, though copyright issues remain.” In the article, it’s revealed that YouTube brought in (only) $15 million in revenue. That’s more than 100 times less than the amount ($1.65 billion) Google paid to buy YouTube. Of course, YouTube is only 2 years old, so no one should expect it can bring manna from heaven.
March 11, 2007 at 5:24 am
that might pay for the server costs
March 12, 2007 at 1:39 pm
Yes, YouTube made about $15 million last year. But, let’s remember that Google’s stop price is selling at a multiple of 50 times earnings to, basically, the $1.5 Billion purchase price was about double that figure.
YouTube should, with the help of Google’s Engineers and Resources, be able to convert the company into a machine that should be able to generate over $100 million this year. At the same multiple, that translates into a worth of about $5 Billion.
Google paid for the deal in cash so the deal, overall, was a steal for Google, especially considering the current trajectory of the site’s traffic puts in on course to be the single number one site on the Internet by the end of this year. With those users, the revenue potential could even exceed the 45% of the revenue currently generated from Google’s main site http://www.google.com.
http://www.digital50.com