[Posted on October 9, 2006 - 3:02 PM]
I was a guest on CNBC's Power Lunch show this morning to discuss the ramifications of a possible acquisition of YouTube by Google. Here are some of the themes I tried to touch on:
1) YouTube is the first startup to ever build a billion dollar valuation based on Romanian pop music, lonely girls and dancing cats (and, oh yeah, the Simpsons, Jon Stewart and South Park).
2) YouTube is considering a sale because it has drawn in a huge audience but needs help monetizing it from the experts. (i.e. Google)
3) Google would be taking its mission of organizing the world's information to online video with this deal.
4) Next up would be Facebook, which could benefit if it moves quickly to secure a sale to Yahoo.
5) The trio of YouTube licensing deals announced today would limit the 'Google is Buying a Lawsuit' chatter.
6) Sequoia Capital, which has invested $11.5 million for about 30% of YouTube, is doing really, really well.
7) The uncertainty for Google would center on its ability to monetize video, which no one has really figure out how to do.
8) This would be the clearest admission yet by Google that it's maturing and it can't build everything on the web itself.
I didn't have a chance to make all of those points during PowerLunch today, but we had a good discussion and I'll be watching closely this afternoon to see if a deal between the two companies is actually announced.
Tags: google, youtube, cnbc, vc, venture+capital.











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