Over the years, Credit Suisse Group (ADR) (NYSE:CS) has made millions in fees advising its marquee client, Google Inc.(NASDAQ:GOOG). In fact, the firm was an advisor on the $1.65 billion YouTube, Inc. deal. To avoid conflict problems, the analysts at Credit Suisse did not publish anything.
Well, now the embargo is over.
As should be no surprise, Credit Suisse put a $600 price target on Google. Oh, and of course, the commentary on the YouTube deal was certainly upbeat. True, there were the necessary disclaimers -- such as possible lawsuits. But, hey, those can be dealt with, right? Actually, today I did a piece for BloggingStocks on this very topic.
For next year, the revenue estimate is about $160 million. However, Credit Suisse thinks it could ultimately go to $1.6 billion. The reason is simple: YouTube will generate a lot of page views that Google can monetize with its advertising machine.
But what I want to know is this: How much did Credit Suisse get paid to advise Google on the YouTube deal?
Tom Taulli is the author of various books, including the Complete M&A Handbook, and operates InvestorOffering.com.
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Reader Comments (Page 1 of 1)
11-19-2006 @ 1:10PM
Vince Chan said...
Let me put this plainly, Credit Suisse is off its knockers. Even if I give in to the idea that revenues "ultimately go to $1.6 billion", where is the time frame analysts? Anything can happen in 10 years, 50 years, 100 years!
The conclusion I draw is that its easier to make money as a "cheerleader" than to do any real analytical work. Case in point if you watch the television series "Entourage".
With this track record, how can serious investors take anything that Credit Suisse say with any confidence?