Schmidt Says YouTube “Nearing Profitability”

Umpteenth assurance from Google's execs

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If Eric Schmidt’s to be believed, YouTube might become profitable any time now; the CEO had only positive things to say about the site at a conference today.  However, his admission that it’s still operating in the red may come as a major disappointment to many supporters.

The problem is that we’ve heard optimistic talk before.  An abbreviated history: in July 2009, Google’s CFO indicated profitability wasn’t far off for YouTube.  This March, a director of video partnerships agreed.  Then Schmidt himself echoed the sentiment in May, and Nikesh Arora used the words "imminent profitability" in July

So lots of folks could have reasonably expected that YouTube would be carrying its own weight at this point.

Anyway, Schmidt’s latest message, according to Mimosa Spencer, was that the site is "nearing profitability and its revenue is doing quite well.  It looks like it’s going to be very successful."

And of course, in fairness to Google, YouTube’s become a household name worldwide, and the search giant’s not exactly running out of money (its market cap is in the neighborhood of $152 billion right now).

As always, we’ll see what happens.

Schmidt Says YouTube “Nearing Profitability”
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  • http://doneinstyle.com doneinstyle dot com

    When you look at the color of the ink, youtube is a loss. But when you look at the amount of information Google gets from everyone uploading, viewing and embedding youtube videos, it’s a win beyond their wildest dreams. And now that youtube has those “share” ties to facebook, twitter and other networking sites, the Goog probably can tell you what color underwear you’re wearing today. Especially if you’ve given into the “ease” of logging into youtube with a gmail or other account.

    Google’s purchase of youtube was dumb as a fox.

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