Google never intended to buy Ozy Media, CEO Sundar Pichai testifies at fraud trial denying $600 million offer
Google never intended to buy Ozy Media, CEO Sundar Pichai testifies at fraud trial denying $600 million offer
Alphabet CEO Sundar Pichai testified in a New York federal court on Friday, denying claims by Ozy Media co-founder Carlos Watson that Google had ever considered acquiring the now-defunct media startup. Watson is currently on trial for fraud, accused of misleading investors about Ozy's financial performance and potential for acquisition.
Watson allegedly boasted of a lucrative acquisition offer from Google, claiming the search giant was prepared to pay $600 million for Ozy. However, Pichai refuted these claims, stating that while Google considered hiring Watson to lead its news programming, an acquisition was never on the table. He clarified that a proposed $25 million investment in Ozy was contingent upon Watson joining Google, a deal that ultimately fell through.
The trial stems from a 2021 incident where Ozy's former COO, Samir Rao, impersonated a YouTube executive on a call with Goldman Sachs bankers, falsely praising Ozy's relationship with YouTube to secure a $35 million investment. Rao has since pleaded guilty to fraud charges, admitting the scheme was orchestrated to deceive investors.
Goldman Sachs bankers who participated in the call testified about the disturbing experience, describing Rao's voice as "unnatural" and "not sounding like a human voice." The incident led Goldman Sachs to withdraw from the potential investment deal.
Further testimony came from Suzee Han, Ozy's former chief of staff, who has also pleaded guilty to fraud charges. Han admitted to falsifying Ozy's financial records and misleading investors about the company's performance under Watson's direction.
The trial continues, with the prosecution building its case against Watson, who maintains his innocence.
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