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Gut feeling: How Google CEO valued YouTube deal

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Eric Schmidt, Chairman and CEO of Google, sits for an interview at the Newseum in Washington on Oct. 2, 2009Let the second-guessing, the mock horror, the disbelief, the crowing begin.

Google CEO Eric Schmidt has acknowledged he realized upfront that he was overpaying to acquire YouTube, to the tune of $1 billion, judged by any conventional measures.

The many critics of Google’s $1.65 billion deal to acquire the video-sharing site three years ago will claim this confirms everything they have always said about the deal. Not quite.

In fact, not really at all.

Schmidt came clean in a deposition by lawyers in the Viacom copyright lawsuit that there was very little revenue coming into YouTube to justify the price his company paid.

No surprises here. There were intangibles to consider:

1. YouTube’s popularity was sky-rocketing, making it the runaway market leader among video-sharing sites.
2. It was crushing his company’s own site, Google Video.
3. YouTube was up for auction and would be sold to a competitor unless Google jumped first.
4. Google overbid to ensure YouTube didn’t fall into rival hands.

Saying boo to Micro-hoo: Eric Auchard

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Eric AuchardLONDON, July 29 (Reuters) – There’s been a bonfire of shareholder value at Yahoo and the blaze is not out yet, even after the agreement to a long-delayed deal with Microsoft.

Eighteen months ago, Yahoo walked away from Microsoft’s nearly $45 billion acquisition offer — a 60 percent premium to Yahoo’s then market value.

#Twitter business math: Counting backward from billions

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1 billion 

 

 

$140,000,000 = Projected 2010 revenue in U.S. dollars according to Twitter February 2009 financial forecast leaked to TechCrunch. (*2)

100 million = Projected number of Twitter users in fourth quarter 2010 according to leaked spreadsheet. (*2)

from MediaFile:

Data Domain, EMC’s deal that nearly got away: Eric Auchard

 -- Eric Auchard is a Reuters columnist. The opinions expressed are his own --
By Eric Auchard

LONDON, July 10 (Reuters) - The quickest way to attract a marriage proposal is to draw the attentions of a rival suitor.

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