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Posted
24 August 2006 @ 12pm

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YouTube – It’s So Hot – It’s One Billion Dollars Hot

I don’t get why people think YouTube is such worth these outrages amounts of money. The site is bleeding money – lots of money. With no path to profitability. Look at this analyst quoted on CNet:

“The viral video space is so hot right now; it’s like Hansel from the movie ‘Zoolander,'” said Aram Sinnreich, managing partner of RadarResearch, referring to the 201 comedy about competition in the modeling business. “I wouldn’t be surprised to see (online video market leader) YouTube receive a bid of $1 billion. Whether the company is worth it is another question.”

YouTubeAt least he has the sense to question whether the company is worth it, yet this just reeks of bubble. A smelly bubble. If YouTube gets bought for this amount without showing any sign of being able to make at least ten million a year, make sure you don’t own stock in the company that bought it.

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