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Writer's pictureJ Dean

YouTube's Value $385 Billion as a Standalone Company: Does IPO Make Sense

Updated: Jul 18

YouTube, a subsidiary of Google, has become a global powerhouse with 122 million users per day, a leader in the video sharing and streaming industry. As its influence and revenue now about $32 billion annually continues to grow, a debate has emerged regarding whether the YouTube would be more valuable as a standalone company writes author, James Dean eVibrations.com


Valuation and Revenue Potential


Recent analyst estimates suggest that YouTube, as a standalone company, could be valued as high as $385 billion or more. This valuation would surpass the market capitalization of major streaming competitors like Netflix, Disney, TikTok, Snapchat, and Reddit. YouTube's substantial ad sales, subscription revenue, and streaming rights contribute to its immense potential.


In 2022 alone, YouTube generated $29 billion in ad sales, accounting for roughly 10% of Alphabet's (Google's parent company) total revenue. Moreover, the platform's foray into YouTube TV, subscription partnerships, and live sports streaming rights further bolster its revenue streams.


The Importance of YouTube for Google


YouTube's importance to Google is undeniable. With users consuming over a billion hours of video daily, the platform provides ample opportunities for Google to display ads and generate revenue. Video content, in some cases, proves to be a more lucrative monetization avenue than traditional search ads. And the social and cultural influence YouTube has on the world is extraordinary. Video sharing information can reach millions and influence mass populations.


Watch Video 25 Years of YouTube, A Look Back ...


New Generation of YouTubers


The top YouTubers boast massive followings and impressive earnings. MrBeast, the most-subscribed individual creator, has amassed over 300 million subscribers and is estimated to earn upwards of $54 million annually. Other top earners include Jake Paul, Markiplier, and Rhett & Link, each with estimated annual earnings exceeding $20 million. These creators generate income through a combination of ad revenue, sponsorships, merchandise sales, and other ventures, demonstrating the immense potential for financial success on the platform. However, it's important to note that these are just a few examples, and earnings can vary greatly depending on the creator's content, audience, and business strategies.


Consumer Benefits and Concerns


Despite the potential financial gains of a standalone YouTube, concerns exist regarding the impact on consumers. YouTube CEO Susan Wojcicki has expressed that separating YouTube from Google would not benefit consumers, though the specific reasons for this stance have not been elaborated upon. Wojcicki believes the integration of YouTube with Google's ecosystem enhances user experience and provides added value through features like seamless account management and cross-platform functionality.


Conclusion


The debate surrounding YouTube's value as a standalone company remains complex. While the financial potential is enticing, the impact on consumers and the potential loss of synergies with Google's ecosystem must be carefully considered. Ultimately, the decision of whether to separate YouTube from Google will require a thorough evaluation of both financial and consumer centric factors to consider with a clear road map of new developments and how it will benefit the users.


About Author


James E Dean ... Director, eBusiness Expert  

James brings over 35 years of experience across a wide range of industries worldwide. He is considered by many to be a leading expert in the energy sector, retail eCommerce, brand marketing and AI technology. Mr. Dean is also a frequent Blogger, and graduate of Boston University. He enjoys collecting antiques, history, travel and fitness.  Inquiry:  Email  Message

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In the late 1980s, Mr. Dean worked at Fidelity Investments and American Finance Group, as Marketing Manager in Boston, Massachusetts. From there, James E Dean joined IMAGRAPH, a company that pioneered digital compression technology for medical CT-Scan and MRI applications, U.S. defense satellite imaging and broadcast digital video production markets. The company later went public (NASDAQ: LUMI). Subsequently, Mr. Dean became involved 1990s as a co-founder at Artel Software / BorisFX in Boston, Massachusetts; where he helped pioneer broadcast digital effects, video editing systems, advanced algorithms for software and hardware video production systems. The company later partnered with AVID Technology to go public (NASDAQ: AVID). Working in this role for many years, Mr. Dean lead the development team that partnered with AVID Technology, SONY, Microsoft, Apple, Panasonic, D-Vision Systems, IBM and MATROX to develop the digital video production industry which has enabled consumers i.e. ordinary people to create broadcast quality information, stories and share knowledge on networks worldwide. Often, J Dean was a frequent tech evangelist at the National Broadcast Convention (NAB) and Consumer Electronics Show (COMDEX) in Las Vegas. In the mid 2000s, James E Dean went on to launch several digital media and AI technology companies including Entangled Vibrations, with a focus on business development, startup capital funding, eCommerce programming and creative multimedia services delivering broadcast quality text, image and video content, a role he enjoys today as the Director.  

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