Google buys YouTube $1.6B - New tech phase?

[David Hardman]

Google buys 2 year old tech company YouTube for $1.6B

http://www.techcrunch.com/2006/10/09/google-has-acquired-youtube/

The size of this deal could have a ripple affect.

Anyone else getting the feeling that tech is coming back into favour.

Loads of VC money been thrown arround in the valley again.

Locally... more tech companies on ST been uncovered - ISS, ITE, EMI

[ohmyme]

Hey David I think Youtube offers an interesting case study. Why did youtube succeed when others didnt? I think the answer to this question is centred around the utility concept. Youtube offered the easiest and most convenient way to upload and view videos. Unlike other websites youtube supports the upload and viewing of any type of video through an internet browser. As simple as that. They didnt offer the best service, they offered the most convenient service. Its also very simple to sign up and easy to navigate website. I think I remember reading somewhere that at one point Youtube accounted for 20% of the entire worldwide internet traffic. Fascinating stuff, it also shows just how valuable traffic is on the net.

cheers.

[tommy]

Hi dave and ohmyme,

Events like this could boost the sector average PE indirectly, but not sure to what extent.

I think the tech sector has been undervalued for a while, and next year I think there will be a resurgence of tech stocks. (More than 50% of my portfolio consists of techs at the moment and quite comfortable with it.)

With all the uncertainties surrounding the real economy, such as Kim's nuclear tantrum, Iran's upcoming nuclear wetdream, Iraq's civil turmoil , Israel vs Arab nations' scuffles, volitale oil prices, concerns over inflation and all the worries regarding key economic indicators, I'm happy to have my money invested in techs that are not directly affected by business cycles[:I]

[David Hardman]

Check out this

Classic. They can hardly contain themselves.

$200m each for a years work.

http://www.youtube.com/watch?v=QCVxQ_3Ejkg

Heh. The VC apparently banked over $400m having only stumping up $11m