Jamie's Blog

Ruby developer. CTO. Swimmer. Always trying to write more

What does money buy you?

Well, it seems that $1.65billion will buy a popular, but unprofitable, video site. I think I’d heard that YouTubewere spending ~$800,000 a month in bandwidth/server costs. That’s an awful lot of advertising Google will have to sell even if they have the servers to cope. Sure, between YouTube and Google Video they capture 9/10 video views in the UK but Carphone Warehouse have just bought AOL’s UK internet operation for £370million and this includes 2.1million paying customers. On the other hand, Carphone Warehouse have paid cash and Google are just giving away shares… which at their currently inflated prices probably means YouTube own about 10 shares in Google. By the time Google’s shares fall to a more reasonable price, YouTube will have been worth about $1000.

Grr… I’m just jealous because I know that no one would spend billions on my unprofitable ideas and I just can’t sell out to the Web2.0 bubble.