The recent rumor about a Google Youtube deal for 1.6B, simply stinks.
Pump in a bunch of money, drive traffic, hype, hype hype, then sell out. How is this different from dotcomm days apart from the fact that companies aren’t going public? Its the same Sequoia Capital folks on both Google and Youtube boards, making life a lot easier for the investors. The mania that caused the dotcomm crash is slowly being re-created without the public markets.
Fine, Google loves the traffic. But $1.6B for a company that has no technology to speak off, no viable business model, burns cash at over $1M a month, and has a bunch of copyright violating videos and lots of traffic. Hello? Are we back in 1998?