Who doesn't know youtube? TV, our friends, colleagues, everyone is broadcasting and sending us their videos. But that was a good business for Google? Let's analyse the numers.
Google bought youtube for $1.65 billion at the second half of year 2006. At 2005 spent $130.5 milion buying other 15 small companies. Reading news of 4 and 5 years ago, people questioned Google decisions, stating that the company is 'betting' in youtube, more investing on it with this purchase. Google Chief Executive Officer Eric Schmidt said that 'This is (was) the next step in the evolution of the Internet'.
And time proved they were right. Youtube total net revenue at 2008 was $244 MMs, and the last year was 2009 $472 MMs. In 2 years they're halfway to pay what Youtube rights cost them.
Estimations for 2010 points to a Total Net Revenue of $614 MMs and a growth of 30%. 2011 will increase a 20% and Google will earn $737 MMs if all expectations are right.
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What we know for true, is that the first quarter of 2010 earnings was beat Wall Street expectations. But time will told us, again, if we're right or not.
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