YouTube Is Worth $70 Billion On Its Own, Says BoA Analysts

Courtesy
Tinashe in the ad for YouTube for Artists.

"YouTube is a big asset that warrants a big valuation," says Bank of America Merrill Lynch analyst Justin Post in a paper shared with Bloomberg this week, and boy is it a big number. According to Post and his team, the Google-owned online video giant would be worth $70 billion if valued on its own -- a fraction of Google's $370 billion market value. If it was placed in the S&P 500, only 66 companies would have a higher market value.

Post estimates YouTube's 2015 revenues to grow 34 percent to $8.2 billion in 2015, and to $13 billion by 2017. One of the big success stories is mobile, which has seen its revenue jump 100 percent year-on-year in the first quarter of 2015. Among social sites, YouTube has the second highest average time spent at four hours per month per user -- right behind Instagram, also at four-plus hours.

Want to hear something sad? On its own, YouTube dwarfs the world's $15 billion music market.

All this value comes as YouTube continues to tinker with its subscription music service YouTube Music Key, which was introduced to beta users six months ago. The company recently announced it would extend that beta period until at least Sept. 15.


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