Google C.E.O. Testifies in Ozy Media Founder's Fraud Trial
How did Sundar Pichai become involved in the Carlos Watson trial?
Sundar Pichai, the chief executive of Google, became involved in the Carlos Watson trial as a witness. Carlos Watson, the founder of Ozy, is accused of misrepresenting his company's financial results, funding, and audience data to investors and lenders from 2018 to 2021. The government alleged that Watson falsely claimed to a prospective investor that Ozy had received a $600 million takeover offer from Google. Pichai testified in a New York courtroom on Friday, stating that he never discussed a possible takeover of Ozy Media. He mentioned that he interviewed Watson in February 2021 for a full-time role managing Google's relationships with news publishers, and as part of the hiring discussions, Google considered investing about $25 million in Ozy "to help with the transition3."
Did Sundar Pichai confirm any discussions about Google making a takeover offer for Ozy Media?
No, Sundar Pichai, the CEO of Google, did not confirm any discussions about Google making a takeover offer for Ozy Media. In a trial surrounding the collapse of Ozy Media, Pichai testified that he never discussed a possible takeover of the media company2. He clarified that Google had considered hiring Ozy's founder, Carlos Watson, for a high-level news executive job in 2021 and potentially investing $25 million into Ozy as part of the transition. However, this should not be confused with a takeover bid.
What specific allegations are being made against Carlos Watson in the trial?
Carlos Watson, the founder of Ozy Media, is facing several allegations in the ongoing trial. The primary accusations against him include:
- Conspiracy to commit securities fraud
- Conspiracy to commit wire fraud
- Aggravated identity theft
The government alleges that Watson misrepresented Ozy's financial results, funding, and audience data to investors and lenders between 2018 and 2021. Specific examples of these misrepresentations include:
- Inflating Ozy's revenue numbers to make the company appear more successful than it actually was
- Falsely claiming to a prospective investor that Ozy had received a $600 million takeover offer from Google
- Faking contracts and forging signatures to provide false evidence of Ozy's business relationships
- Impersonating a YouTube executive on a conference call with Goldman Sachs' asset management division to deceive them about the company's success
Watson's two alleged co-conspirators, Ozy COO Samir Rao and Chief of Staff Suzee Han, have already pleaded guilty to charges related to the case. If convicted, Watson faces up to 37 years in prison.