For people wondering what co-founders Chad Hurley and Steve Chen are like, this video gives some good insight.


We’ve met them in their office, and as mentioned before, they come across as laid back. As you’ll see, they’re not slicksters, either. Classic engineer entrepreneurs, making statements like “bringing two kings together,” that everyone reads something into. Really, it was a casual, factual statement, at least if you hear out Chad. He explains himself later: YouTube is the king of video. And by some measures it is.

And there’s the fact that the Google deal was done at a booth at Denny’s. Yep, Denny’s, that traditional diner that many yuppies wouldn’t come near. According to the Times, they agreed to meet with for lunch on Wednesday with Google’s co-founder, Larry Page, and its chief executive, Eric Schmidt. That’s when the Google executives threw out an offer of $1.6 billion

There’s been a lot of discussion about the valuation of the deal, and what drove it — Truth is, there was probably nothing driving it, or at least there was no mention of it during the conference call yesterday about the deal. As the Times points out:

At one point, Google’s vice president, David Drummond, gave a cryptic explanation: “We modeled this on a more or less synergistic kind of model. You can imagine this would be hard to do on a stand-alone basis.”

There’s been comparison’s to the huge valuations paid for other companies like Geocities, Broadcast, and Skype, and questions about how much these have actually contributed to their acquirers. Skype’s value to eBay remains in serious question, for example.

And with Google’s talent, why couldn’t it have bought one of the many smaller video sites for $65M (that’s how much Sony paid for Grouper recently) and spent the other $1.5B on really superbowl ads or whatever they thought would drive traffic.

In other news, two Bay Area software companies — Macrovision and Sonic Solutions said yesterday that they will offer retailers technology to download and sell DVD’s on demand. Unlike download services such as Apple Computer’s iTunes, buyers would get a physical copy that can be played in home DVD players. Meanwhile, retailers are stepping up the pressure on studios to give them terms that are at least equal to the download services.

With YouTbe and Apple and everyone signing deals, retailers are gettnig upset. Get Mercury News stuff.