Ballmer talks Web 2.0

In this latest Buisnessweek online article, Microsoft CEO Steve Ballmer

Goes on about Google and you tube and covers other subjects ass well.

Ballmer comments on Google-you tube…

[You’ve got to ask] could Google do whatever it is they’re hoping to buy without paying $1.6 billion? Is YouTube really some permanent, long-term thing, or is it a fashion? I’m not saying it is a fashion. But every time we do valuations, I wonder if we can afford to keep this hot for 10 years. I’m sure somebody at Google has got to do the same analysis, because even $1.6 billion is more than 1% of their market cap.
Is there a business model? Right now, there’s no business model for YouTube that would justify $1.6 billion. And what about the rights holders? At the end of the day, a lot of the content that’s up there is owned by somebody else

He certainly makes some good points, you tube isn’t a company with

a profitable business model and growth curve, they get a lot of viewers and downloads, but they have yet to make money, and trying to access this companies value is hard to do, only time will tell if this was a smart move on Google’s part.


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