Google paid about $23 per YouTube unique visitor, 10 cents per trailing 12-month page views and 10 cents per trailing 12-month minutes of use, Bear Stearns analyst Robert Peck said. In comparison, Peck said, Google trades at 14 cents per trailing 12-month page views and 37 cents per trailing 12-month minutes of use.
"This is reasonable in our view, given Google's longer operating history and its more favorable earnings and free cash flow profile," Peck wrote in a research note. YouTube, which was only launched in 2005, gets about 34 million unique visitors each month, according to Nielsen/NetRatings.
... Citigroup analyst Mark Mahaney projected YouTube generating $224 million in 2007 revenue and $112 million in earnings before interest, taxes, depreciation and amortization, which would be a percentage of his 2007 Google estimates for $10 billion in revenue and $6.4 billion in Ebitda.
Mahaney noted that the $1.65 billion price tag valued YouTube at 14.7 times Ebitda, below the 19 times 2007 enterprise value/Ebitda multiple that Google currently trades at.
"Not bad," Mahaney said. Citigroup has provided banking services to Google.