The big news this morning is a CNET report quoting Google CEO Eric Schmidt’s admission that he paid around $1 billion too much for YouTube.
Here’s an extract from Schmidt’s deposition in the ongoing Viacom suit:
Schmidt: I believe YouTube was worth somewhere around $600 million to $700 million.
(Viacom Attorney) Baskin: And you communicated that to the board?
Schmidt: I did.
Baskin: What methodology did you use to come up with that number?
Schmidt: My judgment.
Baskin: Was it based on cash flow analysis? Comparable companies? What were you using as the basis for your judgment?
Schmidt: It’s just my judgment. I’ve been doing this a long time.