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Gut feeling: How Google CEO valued YouTube deal
Let 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.
Twitter backlash foretold
Technology market research firm Gartner Inc has published the 2009 “Hype Cycle for Emerging Technologies,” its effort to chart out what’s hot or not at the cutting edge of hi-tech jargon. It’s just one of an annual phalanx of reports that handicap some 1,650 technologies or trends in 79 different categories for how likely the terms are to make it into mainstream corporate parlance.
Jackie Fenn, the report’s lead analyst and author of the 2008 book “Mastering the Hype Cycle,” delivers the main verdict:
from MediaFile:
The Web 3.0 Echo Chamber
There's not much news coming out of D7, the Internet executive chat fest, other than that Yahoo's new CEO is willing to accept "boatloads of money" to sell the company's Web search business, if Microsoft were willing to pay. They are still talking, sort of. But that is so-o-o last's year's story. Move on.
Confererence organizers Kara Swisher and Walt Mossberg are looking to stir up a debate by declaring that the Web 2.0 era of the internet is over and Web 3.0 is underway. Â
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The Wall
