It’s kind of refreshing to see an executive state the obvious. Guba is an interesting business because they bootstrapped it but in the process made themselves toxic to mainstream venture capital because their bootstrapping mechanism was a porn business, excuse me “adult content”. Yeah, they had over 300,000 subscribers paying $15 a month for a service that really was pretty ingenious, they would archive all the adult content out of usenet newsgroups and serve it up to subscribers. Considering that Guba had deals with Hollywood well before YouTube did you have to wonder, in hindsight, whether or not they could have been YouTube were it not for that porn business. I should also point out that they did clean up and split off that part of the company under a separate brand but the fact remains that people like me, who have been interested in this space for a while, still look at the company and think “yeah they serve up porn”.
Guba CEO steps down, says more execs may follow | CNET News.com:
“I think we can all acknowledge that YouTube has won the big prize,” McInerney said. “Guba is at a crossroads, and we’re deciding whether to look for funding or to sell. I think we’re inclined to sell.”
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