[zaidf]

"The fact that Google bought it doesn't mean they've created a business."

A business can lose money and still remain a business, even a great one. Companies go public all the time while in the red.

And that $500M figure you have for YouTube is the epitome of fuzzy-math.

[zackattack]

Amazon.com lost money for 7 consecutive years before first posting a profit in Q4 2001.

[defen]

That was all part of the business plan though - there was a light at the end of the tunnel, and they knew what it was. Whereas I don't think anyone knows how to make money off of YouTube.

[zaidf]

"In June 2008 a Forbes magazine article projected the 2008 revenue at US$200 million, noting progress in advertising sales."

We know two things for sure: a) youtube IS making money b) youtube is making money in tens of millions.

What we don't know--and what makes the argument that YouTube is a financial burden on google very difficult to prove--is the knowledge of YouTube's expenses.

[wschroter]

I would definitely agree that there is a time and a place to debt-spend your way to profitability.

But consider the fact that some companies, even once they have hit the ball out of the park with thier original goal, still have no way to be profitable doing it.

At some point YouTube becomes a public service charity, not a business.