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Summary:

The pace with which the much-ballyhooed “YouTube killer” joint venture proposed by NBC and News Corp, code-named NewCo, is moving, we might as well call it OldCo. But the company, which still doesn’t have a name, is making the rounds meeting venture capitalists, and private equity […]

The pace with which the much-ballyhooed “YouTube killer” joint venture proposed by NBC and News Corp, code-named NewCo, is moving, we might as well call it OldCo.

But the company, which still doesn’t have a name, is making the rounds meeting venture capitalists, and private equity people trying to raise $100 million on a valuation of about $1 billion. Multiple sources both in New York and Silicon Valley have confirmed NewCo’s attempts to raise cash. PaidContent had reported on this last month, and since then things haven’t changed much.

Talk about chutzpah! Nevertheless, so far they have had very little luck in getting some investor to write the check for what remains to be a grand idea — and that’s all. There is a good chance that they might settle on a name very soon — that is before I start my holiday shopping.

I am still scratching my head on why this phantom company is proposing a valuation of a billion dollars. The glacial progress made by the so-called NewCo explains why MySpace launched MySpaceTV — a site that will showcase professional video, and will help Fox Interactive get a bit of online video advertising gravy on their plate.

Despite all the talk, it is hard to buy into the fact that this new company is going to be able to beat YouTube. According to Hitwise, the traffic at YouTube still is rising like a rocket. Its data shows that YouTube’s market share of U.S. visits has increased by 70 percent when comparing January 2007 to May 2007 (this only includes site visits, not streams or streams from views on embedded videos).

Hitwise says that in comparison, 64 other video sites increased by only 8 percent in that period. As of May 2007, YouTube’s market share was 50 percent greater than those 64 sites combined, Hitwise says.

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  1. Veetube.com wont be a bad name to call it, if they do have name problem.

  2. Alexander Muse Wednesday, June 27, 2007

    I really think the NewCo guys are selling themselves short. Why settle for a billion dollar pre-money? I suspect the arguments for their current valuation would only be more compelling as they increased the pre-money. In fact, my guess is that NewCo 2.0, NewCo’s come lately competitor will be raising money at 2-4x NewCo’s pre-money. Their inflated pre-money valuation will give NewCo 2.0 a leg up and likely put the nail in NewCo’s gold plated casket. Just my two cents…

  3. In a Word | BoomTown | Kara Swisher | AllThingsD Thursday, June 28, 2007

    [...] this post on his NewTeeVee site, Om Malik said organizers of the still-in-the-planning-stages joint venture [...]

  4. NewTeeVee NewCo Names Jason Kilar CEO « Thursday, June 28, 2007

    [...] NBC U. It is seeking, though not finding, $100 million in funding on a $1 billion valuation, as Om reported [...]

  5. GigaOM NewCo Now Has New CEO « Thursday, June 28, 2007

    [...] Thursday, June 28, 2007 at 9:49 AM PT | No comments The wannabe YouTube killer that fancies itself as a billion dollar company, thanks to reputation of its backers NBC and News Corp., a press conference, and lot of talk, has a [...]

  6. Youtube is very very strong competitor. So it will not be easy to kill.:)

  7. Is NewCo worth $1,000,000,000? « Round and round Thursday, June 28, 2007

    [...] June 28, 2007 Filed under: Uncategorized — teksht @ 10:22 pm There is an article of NewCo claiming they are worth a billion [...]

  8. Round and round Thursday, June 28, 2007

    Is NewCo worth $1,000,000,000?

    There is an article of NewCo claiming they are worth a billion dollars.
    They are in a video market like YouTube.  YouTube was sold for 1.65 * 101010101010101010 US dollars. Are NewCo worth that much? I doubt that.
    However, I was originally ten…

  9. Top Posts « WordPress.com Thursday, June 28, 2007

    [...] NewCo Thinks It’s Worth a Billion Dollars The pace with which the much-ballyhooed “YouTube killer” joint venture proposed by NBC and News Corp, […] [...]

  10. Crenk » NewCo Now Has New CEO Friday, June 29, 2007

    [...] wannabe YouTube killer that fancies itself as a billion dollar company, thanks to reputation of its backers NBC and News Corp., a press conference, and lot of talk, has a [...]

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