> Armed with this kitty of money Youtube approached the media companiesNot sure if everything that is revealed by this anonymous guy is true but I'm going to share this with some of my private equity/venture capital associates and friends to see if any of them can provide me with more information.
> with an open checkbook to buy peace. The media companies smelled a
> transaction when Youtube radically changed their initial 'revenue
> sharing' offer to one laden with cash. But even they didn't predict
> Google would pay such an exorbitant amount for Youtube so when Youtube
> started talking in multiples of tens of millions of dollars the media
> companies believed this to be fair and would lock in a nice Q3/Q4.
> [Note to self: Buy calls on media companies just prior to Q3/Q4
> earnings calls.] The major labels got wind that their counterparts
> were in heated discussions so they used a now common trick a "most
> favored nation" clause to assure that if if a comparable company
> negotiated a better deal that they would also receive that benefit.
> It's a clever ploy to avoid anti-trust issues and gives them the
> benefit of securing the best negotiating company. They negotiated
> about 50 million for each major media company to be paid from the
> Google buyout monies.
Tuesday, October 31, 2006
An anonymous experienced media professional shares some intimate details on the Google YouTube deal. This is a fascinating read on how Google and its new purchase YouTube are working with the big media companies that are planning to sue YouTube for the copyright videos. From Blog Maverick:
Posted by I.Z. Reloaded at 8:04 PM
This work is licensed under a Creative Commons Attribution-Noncommercial 3.0 Singapore License.