Report: YouTube is Worth $40 Billion

According to a new report, YouTube could be worth even more than Twitter.


YouTube is potentially worth $40 billion, reports Adweek. Google bought the platform for $1.65 billion in 2006.

Citing a Jeffries report:

With the most viewership by a wide margin (1 billion-plus people each month), the best ad-tech stack, improving content, ubiquity of service (including new extensions into the living room TV) and the skippable TrueView ad format, YouTube makes Google a top pick.

YouTube made $2.8 billion in ad revenue this year, after it split the total ad revenue with content creators. This is an increase of nearly 50 percent compared to last year, and is expected to increase another 25 percent to $3.5 billion in 2015.

It increasingly makes sense for TV advertisers to turn to the video platform, as it reaches more 18- to 34-year-olds than any single cable network. YouTube is cited as the top place to consume media amongst millennials, and traditional media companies are scrambling for a slice of viewership.

The estimated valuation puts YouTube ahead of Twitter, which was valued at $30 billion for its IPO.