Yahoo says YouTube acquisition price 'crazy'

$1.6B too much for third most popular world web site
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During a panel at the Global Technology Symposium, Yahoo corporate development boss Steven Mitzenmacher said the company was set to engage in acquisitions 'guns blazing'.

However when panel moderator Kelly Porter of Woodside Capital praised Google's acquisitions including DoubleClick and YouTube, Mitzenmacher said YouTube's 2006 price tag of $1.6 billion was 'still crazy' according to a Wall Street Journal report.

The comment was greeted by amusement by web commentators who noted that YouTube is now the world's third most popular web site, ahead of Yahoo in 4th place. Yahoo famously bought Geocities in 1999 for $3.5 billion and shut the service down last year.

The Journal reported that a Citigroup analyst had estimated Google's video service to be worth nearly $900 million in revenue this year.

Google corporate development manager Neeraj Arora said YouTube had "paid itself back."

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