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It would be worth more than that. It’s per user revenue is low and can be increased to $20 as author notes. Today’s market values growth over everything and s
by raiyu 6y ago
It would be worth more than that.
It’s per user revenue is low and can be increased to $20 as author notes.
Today’s market values growth over everything and since they are profitable they will get a steep multiple.
Markets are irrational and trade on momentum.
The valuation provided is more of the floor than what it would trade based on growth expectations and general excitement.
Unlike FB which has competition from Twitter and Snapchat and would be suffering had it not acquired Instagram, YouTube itself has no direct competition in its space.
More likely it would trade at $250-350b
Either way it along with Instagram are the two best acquisitions in modern tech history.
- switch11 6y agothat is interesting claiming YouTube and Instagram are the two best acquisitions in modern tech history is one heck of a claim Android instantly beats them both COMBINED That being said they would definitely be in theTop 10
- opportune 6y agoI think it's hard to value Android given that its monetization scheme (lower CAC for Google Search) really only works for Google. If any company other than Google owned Android, it might not have been funded so well for so long, all while giving it away for free.
- fomine3 6y agoYouTube and Instagram were already huge brands when they bought but Android isn't. Possibly they can buy other OS (like Palm?) or develop it yourself?
- gerash 6y agoInstagram IG TV and TikTok are video repositories, aren't they? They're not searchable though.