If YouTube does no advertising, why is it worth so much money?

Why was this company bought for so many millions if it doesn't have advertising on its site? Where does the revenue or potential revenue come from?

If YouTube does no advertising, why is it worth so much money?
It is worth so much to Google... because Google sees so much potential in Youtube to generate revenue in the future. To anyone else on the street who doesnt know what to do with Youtube or how to use it to generate money, obviously it would be worthless.





So what I'm saying is that Youtube is not intrinsically worth the millions it was bought for, but the millions is what Google thinks it is worth paying for and that the owners will accept for selling.





But of course the key factor for buying over Youtube was the fact that millions of people around the world visit Youtube daily and Google will very much leverage on that.
Reply:Because there's always someone out there who has a little more money than sense, invariably and evidently this problem always evens itself out in fairly short order.
Reply:Due to the large amount of traffic there's a potential to leverage Google's advertising strength into a consistent stream of positive free cash flow.
Reply:I don't know, sorry.
Reply:I have bought magazines that talk about youtubes videos... I think its more that people advertise for them...