So my people have been in talks with google's people about the sale of sciforums. We slapped a ballpark figure of $1 billion on the table. They came back with $150. Those damn youtube boys.
This whole $1.5 Billion price tag for youtube simply beggars belief. I just can't see how google even got paseed the initial finance stage: bank manager: hello boys, what can I do for you today? google: we'd like to borrow some money. bank manager: sure, how much? google: $1.5 Billion please. bank manager: how much? google: $1.5 Billion. bank manager: one and half Billion Dollars?? google: yup. bank manager: and what do you want it for? google: wanna by a website. bank manager: a website? google: yup. bank manager: one website? google yup. bank manager ok, let me get this straight, you want me to lend you one and a half Billion Dollars so you can buy a website google: yup bank manager: get the fuck out of here.
google didn't pay $1.5 Billion out of it's own pocket, the people who financed the deal lent google $1.5 Billion, nobody ever pays any money on deals of this size. evidently, as some schmuck was prepared to pay $1.5 Billion for it. I'd like to have been there when the investers asked google how they intended to get any ROI. Do you honestly think youtube's popularity will equate to google recouping $1.5 Billion let alone make any proffit?
Why did google offer so much in the first place? I can't see the owners of Youtube turning down, say a 100 million deal....
good question. such is the nature of these large corporate deals, but one still has to wonder how the investers agreed to pay $1.5 Billion for a single website, and who placed such a price on youtube, and on what did they base this price?
