Mr WaveTheory

Google's YouTube Acquisition May Just Work

I wrote that Google should buy YouTube and how Mark Cuban was wrong about YouTube. My argument is strictly based on valuation of comparable companies in the space - that is a company like YouTube is more similar to Comcast than it is to WPP. In defense of Mark Cuban, I do want to mention that Mark is right about one thing. All of this is being made possible my magical Google stock which is building in very aggressive assumptions about its growth trajectory. Depending on whose numbers you believe at any given them, Google would have to grow 70-90% annually to justify its current valuations. That is a crazy assumption that investors are making. However, if everyone is crazy, some of us are less crazy than others for doing crazy things. Google, Larry, Eric, and Sergei are not crazy. They are in fact the few who are less crazy than others for doing the deal. The crazzies are the investors and analysts who got the stock to $500 in the first place. More about Youtube deal