Comments on: Google still scratching head over YouTube profits http://www.theequitykicker.com/2008/05/01/google-still-scratching-head-over-youtube-profits/ Nic Brisbourne's view from London on venture capital and exploiting change in technology and media Thu, 09 Sep 2010 17:20:00 +0000 hourly 1 http://wordpress.org/?v=3.0.1 By: YouTube monetises like social media | The Equity Kicker http://www.theequitykicker.com/2008/05/01/google-still-scratching-head-over-youtube-profits/comment-page-1/#comment-2834 YouTube monetises like social media | The Equity Kicker Thu, 10 Jul 2008 08:00:17 +0000 http://www.theequitykicker.com/2008/05/01/google-still-scratching-head-over-youtube-profits/#comment-2834 [...] revenue two years on from the $1.6bn acquisition isn’t much - as I’ve said before, I wish the current results were doing more to justify the [...] [...] revenue two years on from the $1.6bn acquisition isn’t much – as I’ve said before, I wish the current results were doing more to justify the [...]

]]> By: nic http://www.theequitykicker.com/2008/05/01/google-still-scratching-head-over-youtube-profits/comment-page-1/#comment-2558 nic Mon, 23 Jun 2008 10:24:39 +0000 http://www.theequitykicker.com/2008/05/01/google-still-scratching-head-over-youtube-profits/#comment-2558 Tks Bizak - some interesting data Tks Bizak – some interesting data

]]> By: Bizak http://www.theequitykicker.com/2008/05/01/google-still-scratching-head-over-youtube-profits/comment-page-1/#comment-2452 Bizak Fri, 13 Jun 2008 18:17:28 +0000 http://www.theequitykicker.com/2008/05/01/google-still-scratching-head-over-youtube-profits/#comment-2452 Bear Stearns estimates that 2008 revenues for YouTube will be $90 million, of which $22 million comes from InVideo advertisements. Using the Bizak Business Valuation Calculator (right) we can get a rough estimate of YouTube’s revenue valuation and EPV (Earnings per Visitor), which is the amount of money earned from each visitor to the site. If you divide the yearly revenues by 12 you get a rough monthly revenue estimate of $7.5 million. We then enter these numbers into the calculator. At this point we’re assuming YouTube has zero costs but in actuality we know this to be false. Based on the Bizak calculations YouTube has an EPV of $0.12 and a Bizak Estimate (business valuation estimate based on revenues) of $360 Million. This valuation is obviously a lot less than the $1.65 Billion Google paid for YouTube, however YouTube is a premium brand that must be (and was) factored into the purchase price. Bear Stearns estimates that 2008 revenues for YouTube will be $90 million, of which $22 million comes from InVideo advertisements. Using the Bizak Business Valuation Calculator (right) we can get a rough estimate of YouTube’s revenue valuation and EPV (Earnings per Visitor), which is the amount of money earned from each visitor to the site.
If you divide the yearly revenues by 12 you get a rough monthly revenue estimate of $7.5 million. We then enter these numbers into the calculator. At this point we’re assuming YouTube has zero costs but in actuality we know this to be false.

Based on the Bizak calculations YouTube has an EPV of $0.12 and a Bizak Estimate (business valuation estimate based on revenues) of $360 Million. This valuation is obviously a lot less than the $1.65 Billion Google paid for YouTube, however YouTube is a premium brand that must be (and was) factored into the purchase price.

]]> By: Display ad problems « The Equity Kicker http://www.theequitykicker.com/2008/05/01/google-still-scratching-head-over-youtube-profits/comment-page-1/#comment-1899 Display ad problems « The Equity Kicker Thu, 01 May 2008 17:11:25 +0000 http://www.theequitykicker.com/2008/05/01/google-still-scratching-head-over-youtube-profits/#comment-1899 [...]       « Google still scratching head over YouTube profits Display ad [...] [...]       « Google still scratching head over YouTube profits Display ad [...]

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