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YouTube and Facebook Sale Soon?

Michael Zhang · September 21, 2006

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The word on the web is that YouTube is willing to sell for $1.5 billion and that Facebook is in serious talks with companies to sell for $1 billion.

The Facebook news is based on an article from the Wall Street Journal reporting that Facebook has had serious talks with Yahoo, Viacom, and Microsoft, and that there are serious discussions with Yahoo about an acquisition for around $1 billion.

YouTube, on the other hand, is demanding at least $1.5 billion for their company according to the New York Post. They quote a "senior industry leader" saying "If they were willing to take $200 million to $300 million, I would buy it tomorrow." YouTube has many downsides that a buyer will have to overlook, including having up to 90 percent of its material violate copyright law, and the gigantic server and bandwidth costs. On the upside, 100 million videos on the website are viewed daily.

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