This one is personal – now that the deal is done, I have to start working on losing 40 pounds. So if you are making plans to meet me for a drink – not going to happen. Given that how wrong I was on this one, […]

This one is personal – now that the deal is done, I have to start working on losing 40 pounds. So if you are making plans to meet me for a drink – not going to happen. Given that how wrong I was on this one, you shouldn’t really read any further. By the way in a poll last month, 19% predicted that YouTube would sell for over $1.5 billion. A whopping 55% said YouTube will be taken out. With that out of the way, lets see who are the winners and losers of this deal.


  1. Sequoia Capital, which invested about $11.5 million in two rounds and owned 30% of the company, which translates to about $495 million. via who else, Dr. Kedrosky.
  2. Steve, Chad, and Jawed – the three co-founders of You Tube, who must be walking away with at least $200 million each. They own close to 50% of the company
  3. Facebook, because now we can expect a knee jerk reaction from someone, probably Yahoo.
  4. Ferrari dealerships, cat litter companies and of course, the real estate brokers.
  5. Litigation lawyers
  6. Michael Arrington
  7. MC Hammer, who visited both Google and YouTube last year. Or as he sings – Can’t touch this!


  1. Yahoo, which is now going to make a move, well that is a move.
  2. Mark Cuban
  3. Me
  4. Google, because I think this is Compaq-DEC, Skype-eBay kind of a deal for them in the long run

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  1. So how much now for Facebook? Do we think Yahoo will have them by the end of the week?

  2. George Tsiolis Monday, October 9, 2006

    Om, I was a firm believer that YT could not go the IPO route, as many rumours over the last few months would have had us believe.

    The Google acquisition probably proves it was not IPO material due to copyright concerns.

    However, the Google acquisition makes plenty of sense. Google provides YT with the muscle, credibility and ability to come to terms with the media giants. In fact, I’m certain that Google tested the waters by speaking to some of the big players and would bet on seeing some news to this effect over the next 90 days.



  3. I agree with George that YouTube was not IPO material, but I think Google could potentially face copyright issues. They need to figure out a way to stop users from putting out copyrighted videos on YouTube.

  4. it’s not that bad. Founders have done a great plan. Google is king advertising sales around content Youtube is king in video content.
    So it might not be bad for the user afterall, the user will probably get a better search kick back

  5. Google is brilliant!

    Om, just cut out sugar and enriched flour. You’ll be down 40 in a year.

  6. I think this safetly locks them out of Facebook, not that they were ever a contender for Facebook.

    This could cause Yahoo or Microsoft to start getting friendly with facebook now that they don’t have Youtube to consider.

  7. George Tsiolis Monday, October 9, 2006

    Arun, you can bet that Google already has some plans to address this and it probably involves:

    • a revenue split of the ads that will now appear on YT

    • official content deals that help the giants promote their programming

    I just don’t see Google making this acquisition and making itself the instant “deep pocket” without having tested the waters first.


  8. Don’t lose too much weight because someone is squatting on MegaOM.com!

  9. Sucks that you have to lose the 40lbs. But it’ll probably be good for you. Remember to drink water instead of soda. And you can still drink, but try to cut the carbs down. Hell, drinking will still make you feel better.

    Still, I would have been a loser with you.

    It’ll be interesting to see how this shakes out. I still think there’s an avalanche of lawsuits waiting to be unleashed now that Google has the pursestrings.

  10. George Tsiolis Monday, October 9, 2006

    Sorry, folks. It’s Thanksgiving up here in Canada. Om reported this morning that many content deals had already been announced:

    “In addition to their reported “marathon negotiations over the weekend,” YouTube and Google were also working in parallel on the content licensing front, with announcements today that YouTube had signed the recalcitrant Universal11, as well as Sony BMG12 and CBS13, while Google had picked up Sony and Warner Music Group14 (with whom YouTube already has a deal15). The deals mainly allow legal use of labels’ music and music video content.”


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