How Good was The YouTube Deal?

February 22, 2007

We all got surprised when Google announced the acquisition of YouTube for $1.65 billion. Without a doubt it was a great deal for the founders of the popular video exchange site and for the investors. When this happened, we knew that the founders would take to their pockets a great part of the money and that the other part would be for the investment firm, Sequoia Capital.

Google recently published in a filing with the Securities and Exchange Commission the numbers of the deal with Youtube, which are quite enviable. Here is a summary of what Google delivered .

YouTube ´s CEO and Co founder Chad Hurley received : $345 million

Co Founder Steven Chen received : $326 million

Co Founder: Jawed Karim received : $64 million

While Sequoia Capital received of the deal: $442 million

Apparently the idea was quite profitable for the founders and for Sequoia; we´ll have to wait to see if the deal was good enough for Google too. If I was one of the founders I would have preferred to be be paid: half in cash and the other half in Google stocks which with a little bit of luck and if the company continues growing as it has, my money would increase in some years maybe to a billion or more. What would you do?

Written by Unlisted · Filed Under The Lounge 

Comments

One Response to “How Good was The YouTube Deal?”

  1. Ed on February 27th, 2007 2:29 pm

    Maybe the youtube owners considered themselves yet another one of the xperimental assets that can’t make money but looks good in the Google portfolio. On that basis, they might have thought that if Google keep on buying more “youtubes” GOOG are not going to get much more valuable? They are wrong and you are right, though, they gave up the real chance of a billion.

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