YouTube Cashes In On Yahoo Exodus
Gideon Yu, Yahoo treasurer and senior VP for finance, can be listed among the executives and staffers leaving Yahoo for startup companies and a chance to cash in on a fast run-up in value a new company offers those on the ground floor.
Video-sharing site YouTube enticed Yu away from Yahoo to be its chief financial officer. He will join Tony Nethercutt, who also ditched Yahoo for the opportunity to join YouTube and run its advertising sales team.
The Wall Street Journal reported on Yu leaving Yahoo, and cited several other people who have likewise sought cash-money-greener pastures in what has been a resurgence in technology startups offering web-based services.
Blame it on the stock market, the Journal said. Long-time Yahoo staffers whose options finished vesting in 2005 can take that money and run. Also, Yahoo’s current stock price is well below where it opened in 2006.
Everyone moving to startups shares a common dream – the astonishing wealth a lucrative IPO can bring for an innovative, successful company that goes public. One need not look any further than Google, whose 2004 IPO has made billionaires of its founders and CEO.
YouTube has become a heavily visited destination online, as video has begun to move from being popular to a point where Internet users expect to find it. The company’s challenge will be to find a profitable way to capitalize on their service.
Some speculate that will be through being acquired by another big Internet player. Others believe partnerships will add profitability to YouTube. The company must have something in mind, to attract people like Yu and Nethercutt to their offices. We’re guessing lots of zeroes preceded by a dollar sign and some inconsequential number helped.
David Utter is a staff writer for WebProNews covering technology and business.