Dive Brief:
- Analysis released from Jeffries estimates YouTube's value to be approximately $40 billion — making it worth more than social rival Twitter.
- YouTube's ad business is propelling its worth forward as Jeffries predicts ad revenue will hit $8.9 billion by 2016.
- Upfront deals with agencies like Publicis and Magna Global—worth $100 million each —are helping YouTube build its worth.
Dive Insight:
It's clear YouTube has struck a chord with advertisers by building out a popular video platform. That advertising revenue is only expected to grow in the future, which makes Google's $1.65 billion investment in 2006 seem like a steal.
