It all started when Sony
bought Grouper for $65M.
Similar to real estate
sales in your neighborhood, that transaction established a benchmark against
which other video sharing websites could be evaluated.
Mark Cuban didn’t agree
and said “only a moron
would buy YouTube.”
People that support the
valuation point to YouTube’s increasing
to use toolset, and social networking environment.
New York Times quoted Alex Zubillaga, Warner’s executive vice president for
digital strategy, “This is a framework that allows us to monetize our assets
while we unleash the creativity of the user.”
Time will tell what
YouTube is really worth.
The bottom line: Can
YouTube be both profitable and legal?
Some ideas on that …