Google is set to lose $470 million on YouTube in 2009, according to estimates by Credit Suisse. Even for Google, whose market cap hovers around $115 billion at its current share price, that's a hell of a write-off for one product.
Some pundits have predicted the dissolution of the video site--something would be anathema to the Web 2.0 mantra: get users now, make money later. How can Google justify keeping YouTube around? How can it take a property that loses half a billion dollars a year and make it sustainable?
Read More »