October 7, 2009 at 15:29Extra billion paid for YouTube
Since 2006, many analysts have been racking their brains, prompting Google to pay an astronomical sum of $ 1.65 billion for an 18-month-old YouTube startup, which, it seems, could not have cost such money. Now we have an answer.
The president of the company, Eric Schmidt, during a court hearing against Viacom, admitted that they specifically paid a billionth premium for YouTube in excess of its real price (“real” means the price calculated by standard economic instruments based on the forecast of the company's financial flows).
The prize was made in order to instantly stop trading, which threatened to flare up between Microsoft, Yahoo and Google, and to quickly complete the purchase. The normal price of YouTube, as Schmidt announced at that time on the board of directors, was about $ 600-700 million.
The president of the company, Eric Schmidt, during a court hearing against Viacom, admitted that they specifically paid a billionth premium for YouTube in excess of its real price (“real” means the price calculated by standard economic instruments based on the forecast of the company's financial flows).
The prize was made in order to instantly stop trading, which threatened to flare up between Microsoft, Yahoo and Google, and to quickly complete the purchase. The normal price of YouTube, as Schmidt announced at that time on the board of directors, was about $ 600-700 million.