The chief executive of CBS has apparently ruled out buying Facebook and YouTube, citing the price tag as the main reason for not purchasing either of these social networks.
(MSNBC) Mr Moonves said social networking was an important phenomenon and CBS had looked at Facebook and YouTube, “but we’re not going to buy them”. […]
He questioned the valuations that have been mooted for the two young companies, asking: “Is YouTube worth $1bn today? Maybe, but it’s a lot of money. Is Facebook worth hundreds of millions of dollars? We’re looking at all these things.”
YouTube is one of the hottest video sites online, and it probably comes to no surprise that CBS was interested in purchasing them as they would provide the TV network with a new medium to reach the youth culture.
Apparently CBS does not have the funds for buying out YouTube (or rather justifying the purchase) but if Mr. Moonves does not act while the price is affordable, he may later on regret his decision if Yahoo or NBC decides to add YouTube to their online arsenals.