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YouTube Pays Off Labels with $50m

Equity Stake Golden Payoff

     
4:33 pm on Oct 19, 2006 (gmt 0)

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According to the New York Times:-

Three of the four major music companies ó Vivendiís Universal Music Group, Sony and Bertelsmannís jointly owned Sony BMG Music Entertainment, and the Warner Music Group ó each quietly negotiated to take small stakes in YouTube as part of video and music-licensing deals they struck shortly before the sale, people involved in the talks said yesterday. The music companies collectively stand to receive as much as $50 million from these arrangements, these people said.

Full Article [nytimes.com]

It seems a little shady to me given that it's only the big labels that got a slice of the action. I guess the others can be paid off easily, but I'm not sure how I feel about that.

However if this proves to be a litigation-busting move then it will certainly shut up the critics.

6:01 pm on Oct 19, 2006 (gmt 0)

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So does this mean I can continue to upload Wham! videos?
9:37 pm on Oct 19, 2006 (gmt 0)

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MR Speed you better wake up before you go-go ... ;-)

{ducks and runs for cover}

11:30 pm on Oct 19, 2006 (gmt 0)

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Any chance to see more videos of Andrew Ridgeley lip-syncing is welcome.

;)

11:32 pm on Oct 19, 2006 (gmt 0)

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50 million is a small sum of money, even smaller when split between those companies.
12:01 am on Oct 20, 2006 (gmt 0)

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LMAO @ graywolf
1:16 am on Oct 20, 2006 (gmt 0)

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I guess Marc Cuban wasn't aware of this little deal - yeah it really does seem like a tiny amount of money, but of course this is equity which is bound to grow with the company owned by Google...
1:24 am on Oct 20, 2006 (gmt 0)

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ok, what if Youtube worked out a deal with copyright owners that they would share the adsense revenue with them for all content that they have rights too? wouldn't that be great for every one and save Youtube from a lawsuit caused demise?
11:43 am on Oct 20, 2006 (gmt 0)

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The opportunity goes well beyond "adsense revenue." This isn't your typical website -- 50 million is a small sum but i'm sure that there's still a few restrictions that come with this deal. Something has to be wrong the day I can upload several hours of content without any consequence.

System

12:18 pm on Oct 20, 2006 (gmt 0)

redhat

 
 


The following message was cut out to new thread by engine. New thread at: goog/3128417.htm [webmasterworld.com]
2:27 pm on Oct. 20, 2006 (utc +1)
1:32 pm on Oct 20, 2006 (gmt 0)

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Record companies have benefited from investments in online companies before. In 1999, EMI made $40 million literally overnight by selling part of its stake in Musicmaker.com during its first trading day. That sum dwarfed the companyís earnings from American CD sales for the entire first half of that year.

At first I though 25 million was peanuts as well. But if $40 million "dwarfs" earnings from American CD sales then maybe $25 million is a fair shake?

Also the article mentions revunue sharing from ads.

Where the hell does all the money go to for a $17 CD?

2:10 pm on Oct 20, 2006 (gmt 0)

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hmmm wonder what the YouTube valuation was when that 50 million was worth 50 milion. Did that turn into multiples when the sale went through or was it 50M of a 1.6B company?