Who else but Google alone?

I still can’t see how a “potential advertising venture” that is yet to generate substantial revenue would be valuated at 1.6B USD. Consider Lenovo bought IBM’s long-established brick-and-mortar PC making business 2 years ago for merely 1.25B USD.

Maybe I am still living under the shadow of previous bubble burst, and couldn’t figure out all the maths of the supposedly “new economy” of Web 2.0.

Cuban, co-founder of HDNet and owner of the NBA’s Dallas Mavericks, also said YouTube would eventually be “sued into oblivion” because of copyright violations.

“They are just breaking the law,” Cuban told a group of advertisers in New York. “The only reason it hasn’t been sued yet is because there is nobody with big money to sue.”

Yes indeed. Besides bleeding huge amount of money of bandwidth cost, all the copyrighted video on YouTube that might attract potential law suits can really scare all the possible buys. Actually, it wasn’t a “might”, but “definitely will”. All the media companies are just waiting for someone with a deep pocket so all the copyright violation can be compensated.

Sounds like a hard time for YouTube. Big monthly expense — and it seems their only way out is acquisition, but no one seems to want to make that move. Maybe profitable high-bandwidth video sharing service that relies on only ads revenue is still years ago?