GOOG Predicted To Rise On YouTube Buy
Michael Arrington’s rumor that Google was in talks to buy YouTube for $1.6 billion, which he’d given a 40 percent chance of survival, was backed up by both the Wall Street Journal and the New York Times, all citing sources familiar with the negotiations.
That raises our Acquisition Alert Level to orange, especially as Google signs deals with both Sony BMG and Warner Music for the rights to show ad-supported music videos. We’ll bravely raise that 40 percent chance to an even 50/50.
Though skeptics have said, to quote from the WebProWorld forum, Google YouTube acquisition would “be like going out with a girl with three illegitimate kids and a broken down car,” because of all the copyright baggage, others think the potential deal would give Google a significant boost.
Home-game stock market guru Jim Cramer told a caller on his radio show Friday evening that if in fact Google acquired YouTube, then market players should expect Google stock to rocket past the $500 mark. Cramer also values YouTube as high as $3 billion.
Perhaps Google CEO Eric Schmidt will leverage his new position among the board of directors at Apple Computers to ink a deal there, too, forming a Google, YouTube, Apple conglomerate that we at the office are affectionately calling iBubble.