BOA values YouTube at $70BN

DetailsEditor | 29 May 2015

As it celebrates its tenth anniversary, the YouTube online video service just keeps getting stronger and is now valued at over 40 times what Google paid for the service, says a Bank Of America research note.

As reported by Bloomberg, a BOA team led by analyst Justin Post calculates the online video juggernaut is now worth more than $70 billion on its own, with only 66 companies in the S&P 500 having a higher market value. Post added that if one considered the potential $80 to $90 billion that YouTube could generate, this would place fewer than 60 at higher value levels. This would equate to more than fifth of Google's current market value.

Furthermore the analysts believe that YouTube will add three points of growth to Google's website revenues in 2015 and should continue to offset a deceleration in search as it grows in scale. This would mean YouTube revenues growing 34% to $8.2 billion in 2015, and to $13 billion by 2017, which would mean revenues more than doubling in the period between 2014 and 2017. BOA made particular note of the strength of YouTube in mobile video with revenue in this sector up 100% year.