If Google buys YouTube, what direction will its stock go?

[scorpion]

I think it will shoot up like a rocket. What do you think?

[gazuz]

Probably not that big of a jump actually.. in my opinion its way overpriced for what it is. The problem with all these video sites is the copyright issues. even myspace.com has their own video section. I just think all this is a big mess and that once youtube is more reinforced with the whole copyright thing it will be less famous. Of course a lot of videos will still be good and many people will go, but they need to have their own spice to differentiate from all the others

[brokefxtrader]

Back in the day when I use to look at balance sheets one thing I remember is if companyA buys companyB, companyA must liquidate cash to make the purchase (if cash is being used). Lots of free cash makes a balance sheet look good and makes that company stock more attactive. Once that free cash number goes down, it throws off the whole balance sheet, not essentially to the negative side but makes it less attractive then it could have been. CompanyA's stock may acutally go down because of this because companyA may also be taking on all of companyB's bills or outstanding warrants, credits, or whatever.

My 2 pips

[gazuz]

Google only bought Youtube because they want to eat up the competition for Google Video.. I still believe once the copyright issues are fixed with youtube, it will be less popular

[Ravique]

Google was not the only one to buy YouTube. Microsoft , and a couple of other corps were willing to purchase YouTube, but Google was the only one to accept the 1.6 billion price.

Anyways, I am reading Google News right now , and there are some interesting posts there, like:

http://blog.searchenginewatch.com/blog/061012-074221
http://www.theglobeandmail.com/servl...Story/Business
http://www.tgdaily.com/2006/10/11/go...tube_analysis/

[scorpion]

Oh my blind speculation is correct! From Oct 8, Google stock has gone up $50. I forgot to gamble!

[gazuz]

Hah scorpion, the only problem with that is the day you actually will gamble, there will be more emotion in it. real money can be lost etc.. I know thats what happens to people, I have a friend whos a forex broker right now.. He got an account, did about 5 positive trades, then lost once and hasnt traded on that account since.. its fear. Same with the stock market

[scorpion]

Told you i forgot to gamble. Since it's not high-probability opportunity. I don't regret it at all--just wanted to play with that ranting emoticon.