Get this: YouTube is worth more than Time Warner, Twenty-First Century Fox, Hewlett-Packard, Ford, Dow Chemical, General Motors and that company that makes realistic-looking sex dolls. Considering YouTube alone was valued at $40 billion last year, prepare to have your mind blown!
According to Bloomberg, analyst Justin Post and his team at Bank of America Merill Lynch have declared that YouTube is worth more than most of the S&P 500 — that is to say, of the 500 richest companies in America, YouTube is worth more than 444 of them.
Yup, Post has valued Google’s lil’ video platform at approximately $70 BILLION dollars.
But wait, there’s more!
Post speculates that the numbers are only going to go up … and soon! According to Bloomberg:
“The BofAML analysts estimate that YouTube will add three points of growth to Google’s website revenues in 2015 and should continue to offset a deceleration in search as it grows in scale. Based on BofAML’s projections for growth in the online video ad market, the analysts expect YouTube revenues to grow 34 percent to $8.2 billion in 2015, and to $13 billion by 2017, which would mean revenues more than doubling in the period between 2014 and 2017.”
An $80bn valuation for YouTube, incidentally, would equate to more than a fifth of Google’s $370 billion market value.
Crazy, right? Hell, there’s even a chart that explains as much:
Considering that Google paid $1.65 billion for the company back in 2006 — a price many considered too overvalued — it’s suddenly looking like the boys at Google are the smartest people in the room.
Of course this is just one analyst putting out their projections and findings — likely other valuations would put the company value in more modest proportions, but probably not by much.