Google CEO testifies in Ozy test and denies $600 million offer

(Bloomberg) — Alphabet Inc. CEO Sundar Pichai took the stand at the fraud trial of Ozy Media Inc. co-founder Carlos Watson, testifying that the search giant never intended to buy the startup for any amount of money. money.

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Watson is accused of defrauding investors of tens of millions of dollars by lying about Ozy’s commercial success, including boasting that Google had offered to buy the company for “hundreds of millions of dollars.”

The once-successful media startup collapsed after the New York Times reported in 2021 that chief operating officer Samir Rao impersonated YouTube executive Alex Piper to praise Ozy in a February 2021 call with bankers of Goldman Sachs Group Inc. Rao, who pleaded guilty, testified earlier this month that it was part of his and Watson’s scheme to deceive investors into thinking Ozy was profitable.

Pichai on Friday told the jury in federal court in Brooklyn, New York, that the Ozy acquisition was never discussed, but that Google considered hiring Watson as head of its news programming. A $25 million investment in Ozy would have been part of that deal.

“Mr. Watson was a critical part of Ozy Media and we were considering making an investment in the company to facilitate the transition,” Pichai testified.

“Have you ever offered to buy Ozy Media for $600 million?” asked prosecutor Dylan Stern.

“No,” said Pichai.

In his opening statement at the trial, Stern said Watson used Google’s fake offer to lure another Ozy investor after the Goldman incident.

“When the Goldman deal fell through, Watson found another victim and lured them into investing $20 million in Ozy by telling them that the Google CEO himself had offered to buy Ozy for hundreds of millions of dollars,” he said. Stern. “That was a lie. But Watson didn’t let the truth get in the way.”

Although Watson claimed to have a far-reaching relationship with the Google chief, Pichai said they only spoke twice. The first was a “just a few minutes” conversation at a conference, while the second was Watson’s job interview on February 25, 2021, weeks after the Goldman call.

Watson didn’t get the job.

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