Google CEO Sundar Pichai appeared briefly in a New York courtroom on Friday for the federal financial conspiracy trial involving startup Ozy Media. Pichai offered testimony that contradicted the assertions of its founder, Carlos Watson, that the tech giant once offered to buy Ozy.
Google and Alphabet CEO Sundar Pichai departs federal court on October 30, 2023, in Washington, DC. Pichai testified on Monday to defend his company in the largest antitrust case since the 1990s. (Photo : Drew Angerer/Getty Images)
Testimony of Sundar Pichai and the Role of Google
Sundar Pichai said Google had considered hiring Carlos Watson as a senior news executive in 2021 and investing $25 million in Ozy as sort of a tradeoff to lure him away from the company.
Pichai emphasized Watson's significance in Ozy Media and indicated that Google was exploring options to make the transition easier. During questioning by prosecutor Dylan Stern, Pichai denied ever offering to buy Ozy Media for $600 million.
Pichai clarified that he met Watson at a conference and later conducted a video interview regarding a potential high-level role involving news outlets at Google. However, neither the proposed employment nor the $25 million investment in Ozy materialized.
Prosecutors alleged that Watson informed another potential investor that Pichai had personally made a nine-figure offer to acquire Ozy, a company headquartered in Mountain View, California, known for producing TV shows, podcasts, and a music-and-ideas festival.
However, it faced collapse in late 2021 following accusations of exaggerating its audience size, business deals, and financial health.
Ozy Media lawyer Shannon Frison firmly denied the claim that Watson had ever stated Google made a $600 million offer. Frison noted that Watson never had that conversation with Google or relayed such information to anyone else.
Defense attorneys have attributed any misleading actions to Ozy co-founder Samir Rao, alleging that he falsely accused Carlos Watson to evade his own potential imprisonment. Rao has pleaded guilty to identity theft and conspiracy to commit fraud and is awaiting sentencing.
During his testimony in the trial, Rao acknowledged being swayed by ambition and a strong desire to sustain the company, influenced by Watson's unwavering conviction that failure was not an option and any means necessary should be pursued.
Rao gained notoriety for posing as a YouTube executive, using a voice-disguise app, during a February 2021 call with Goldman Sachs investment bankers to promote Ozy. During his testimony, Goldman Sachs executive Hillel Moerman described the incident as highly disturbing and surreal.
Rao admitted using the phone trick to support a false claim that YouTube was funding Watson's talk show. He testified that Watson was present during the call and sent him texts directing his statements.
However, defense attorney Ronald Sullivan Jr. said that Watson entered the room during the call, recognizing the unfolding situation as chaotic, and attempted to persuade Rao to terminate the conversation. Moerman testified that they found the impersonated YouTube executive's voice suspiciously unusual during the call.
Following their suspicions, Moerman's colleague promptly contacted the real executive of YouTube, a subsidiary of Alphabet, which led to the exposure of the deception. Consequently, the prospect of an investment from Goldman Sachs was dashed.
