Google CEO Sundar Pichai Testifies at Ozy Media Trial and Rejects $600 Million Takeover Offer for Failed Tech Startup: Tech Times

Google CEO Sundar Pichai appeared in a New York courtroom on Friday during a federal financial conspiracy trial involving startup Ozy Media. Pichai gave testimony that contradicted claims by company founder Carlos Watson that the tech giant once offered to buy Ozy.

Sundar Pichai’s Testimony and Google’s Role

Sundar Pichai said Google was considering hiring Carlos Watson as senior news director in 2021 and investing $25 million in Ozy as part of a compromise to lure him away from the company.

Pichai emphasized the importance of Watson to Ozy Media and indicated that Google is exploring options to ease the transition. Under cross-examination by prosecutor Dylan Stern, Pichai denied ever offering to buy Ozy Media for $600 million.

Pichai explained that he met Watson at a conference and later conducted a video interview about a potential high-level news reporting role at Google. However, neither the proposed hire nor the $25 million investment in Ozy came to fruition.

Prosecutors alleged that Watson informed another potential investor that Pichai had personally made a nine-figure offer to acquire Ozy, a Mountain View, California-based company known for producing television shows, podcasts and a music and ideas festival.

However, it faced collapse in late 2021 amid accusations of exaggerating its audience numbers, business deals and financial health.

Ozy Media’s lawyer, Shannon Frison, strongly denied the claim that Watson ever stated that Google made a $600 million offer. Frison noted that Watson never spoke to Google about the issue or provided the information to anyone else.

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Charges and legal defense

Defense attorneys attributed any misrepresentations to Ozy co-founder Samir Rao, claiming he falsely accused Carlos Watson to avoid potential imprisonment. Rao pleaded guilty to identity theft and conspiracy to commit fraud and is awaiting sentencing.

During his trial testimony, Rao admitted that he was driven by ambition and a strong desire to keep the company afloat, influenced by Watson’s unwavering belief that failure was not an option and that any means necessary should be used.

Rao rose to fame for posing as a YouTube executive and using a voice-disguising app during a February 2021 phone 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 to using the phone trick to support the false claim that YouTube was funding Watson’s talk show. He testified that Watson was present during the conversation and sent him text messages explaining his testimony.

However, defenseman Ronald Sullivan Jr. said Watson entered the room during the conversation, found the developing situation chaotic, and tried to persuade Rao to end the conversation. Moerman testified that during the conversation, the voice of the impersonating YouTube executive sounded suspiciously unusual to him.

Following their suspicions, Moerman’s colleague immediately contacted the real CEO of YouTube, an Alphabet subsidiary, which led to the fraud being exposed. As a result, the prospect of Goldman Sachs investing was ended.

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