Why is Utube worth over $800m?

How does a valuation like that come about? How does it make its money?

Why is Utube worth over $800m?
No, YouTube in its self is not worth the $1.65 Billion (800 million pound). Google is betting that they can make money off of the ads placed on the site.


The bigger concern for google would be avoiding copyright violations that I am sure are rampant on the YouTube site. They have already signed agreements with BMG and Sony music to try and head off some of the threats.
Reply:They wont, tube were losing 25 million dollars a year and google have just taken a chance hoping they'll get the money back from advertising. Nothings guaranteed in business
Reply:Google will make an absolute fortune from online advertising on that site. It already has a huge user base and its getting bigger so companies will want to advertise on it. Google will make that 800m in no time
Reply:Everything is about advertising.


They got the money from advertising.
Reply:i don't know why its worth so much, but its worth 1.5 billion not 8 million the price has risen because the people who own google have just bought utube for 1.5 billion.
Reply:It's all about advertising.





Is Utube worth $800m. No but then again most internet companies aren't worth the kind of money being quoted for them. Even Amazon doesn't make money.
Reply:No of course not, real people know this but companies have images to protect so if Google didnt buy it then they would be seen to have a credible rival and there own business value would suffer therefore they had to buy it for loads of money so that "the market" can believe that Google is unique and very valuable too