Ok, so we’ve had a few hours to let the news of the Google-YouTube marriage sink in. While we never quite agreed with Mark Cuban’s POV on the potential marriage (Check out his thoughts on the aftermath) we just didn’t think it would happen this quickly. Silly us. Google acted like a market leader, quickly [...]

Ok, so we’ve had a few hours to let the news of the Google-YouTube marriage sink in. While we never quite agreed with Mark Cuban’s POV on the potential marriage (Check out his thoughts on the aftermath) we just didn’t think it would happen this quickly.

Silly us.

Google acted like a market leader, quickly and decisively, in snapping up a competitor who has built what seems to be becoming the de facto standard for storing, sharing and commenting on video content on the Web.

It’s too early to comment on what this may or may not mean for Google Video, or to YouTube users, but the acquisiton is pretty amazing – both for its pricetag, and the speed to which it rose to those heights.

We did a bit of back of the envelope math on a few of the most recent high-profile social networking/web 2.0/insert buzzword here companies that have been acquired. Based on our rough calculations, YouTube was able to grow its valuation by $2.6 million every day since its launch in February 05.

Check it out:

The method’s far from scientific… in a couple of cases, we were working off of estimated launch dates, and rumored purchase prices. And of course, the number doesn’t mean anything at the end of the day. But it’s still pretty damn incredible to think about all the value that was created in such a short time.

Business model? Pshaw. Who needs one??

This entry was posted on Monday, October 9th, 2006 at 7:07 pm and is filed under Investment, M&A. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.