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October 10, 2006

YouTube: So far, it's free!

Steve Rosenbush

There's been plenty of discussion over Google's $1.65 billlion acquisition of YouTube. link. The price has convinced many people that the second coming of the dot-com bubble has arrived. That could turn out to be correct. But as one investment banker noted to me yesterday, Google is using its own stock to pay for YouTube. The value of its stock has increased by more than $1.65 billion since word of the deal leaked out last week. So from a certain perverse point of view, one could argue that Google actually got YouTube for free. That may change if Google stock takes a turn for the worse, and if the decline can be pegged to the YouTube deal. But for now, one might argue that that YouTube is free until it isn't.

07:46 PM

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