Google is building itself for the long term and this is one piece in building that

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(Continued) The RFS Newsletter, Mar. 10, 2007. Page 2
Last week, Bear Stearns issued an analyst report that suggests YouTube had revenue of $15 million last year, which means Google paid more than one-hundred times the video site's annual intake. But don't panic, at least not just yet. "Generally speaking, it's still way too early to guess if the acquisition has been successful or not," said UBS analyst Benjamin Schachter.

"Overall, Google is building itself for the long term and this is one piece in building that." But it is clear that Google's backing has opened doors for YouTube and made it an even more formidable contender in the world of media content than it was before. To be sure, take last week's deal with the NBA, which created a channel of about 30 authorized clips on YouTube.

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