What Eric Schmidt Meant When He Said Google Wasn't Holding $500 Million From YouTube For Lawsuits: We're Holding $200 Million
from the semantics dept
Remember the rumor, kicked off by Mark Cuban, that Google was holding back $500 million from YouTube in escrow to deal with potential copyright infringement lawsuits? Yes, the same claim that Google CEO Eric Schmidt clearly denied was true last week. Well, it seems that when he called it false, it appears he only meant the number, not the concept. Today it came out that Google has actually put aside a little over $200 million in an escrow account, almost exactly as the original email Mark Cuban posted described. It's to handle potential legal costs associated with copyright lawsuits. While it's not nearly as much of the deal as originally suggested, it still is a significant chunk. There's a second interesting tidbit in the article as well. While some had suggested that YouTube actually has been profitable, apparently, the company was so hard up for money, it needed to borrow $15 million between the time the deal was announced just over a month ago and its closing of the deal yesterday.Thank you for reading this Techdirt post. With so many things competing for everyone’s attention these days, we really appreciate you giving us your time. We work hard every day to put quality content out there for our community.
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Escrow in acquisitions
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And?
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Re: And?
Not saying it's not responsible. Just noting that it was denied, and then done anyway.
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Pricey
I guess ads on YouTube could rake in alot of money...
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from a peons point of view
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Re:
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What he said
The new about YouTube being cash flow negative is interesting, though. In the weeks leading up to the sale lots of folks in the 'sphere made much hay out of a suggestion that it was cash flow positive.
Plus ca change ....
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Public
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Re: Public
Then again, if Mark Cuban knew about it the sharks have been circling around for months. It's always good when the wrong amount of money is circulated so that people know where the leaks come from.
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Cash strapped but still worth 1.65B?
There was an article in the Mercury http://www.mercurynews.com/mld/mercurynews/business/15919012.htm
where the folks at Fox said that they were not approached by Youtube for a possible acquisition. If you are cash strapped wouldn't you approach all and sundry for a purchase?
The Youtube acquisition was a BIG thank you from the Google guys to Sequoia?
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Agree with post 10 above...
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I know nothing about M&A but,
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I know nothing either, but..
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trade google
http://www.naughtyconnect.com/z.jpg
I trade goog once per day. 70% of the time i am right.
Happy trading.
-Chris
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comments on google
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