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Alphabet CEO Sundar Pichai Testifies in Ozy Media Fraud Trial
In a high-profile fraud case against Ozy Media Inc. co-founder Carlos Watson, Alphabet Inc. CEO Sundar Pichai took the stand as a key witness. During his testimony, Pichai firmly stated that Google never entertained the idea of acquiring the beleaguered media startup, contradicting Watson's claims that the tech giant had shown substantial financial interest.
Watson finds himself in deep legal trouble, accused of deceiving investors to the tune of tens of millions of dollars through false portrayals of Ozy’s business viability. Central to the prosecution’s case is the assertion that Watson falsely claimed Google was prepared to buy Ozy for a sum reaching "hundreds of millions of dollars." These fabrications came to light following a 2021 New York Times exposé, which revealed that Ozy’s Chief Operating Officer at the time, Samir Rao, had impersonated a YouTube executive to illicitly bolster the company's image on a call with Goldman Sachs Group Inc. bankers.
Rao, who has since pleaded guilty, provided testimony earlier in the trial, confessing that the impersonation was part of a broader scheme orchestrated with Watson to mislead investors into believing Ozy was financially robust and thriving.
Pichai Denies Acquisition Talks
Under questioning from federal prosecutors, Pichai clarified that Google never considered purchasing Ozy Media. However, the company did explore the possibility of bringing Watson on board as the head of its news programming division, an arrangement that would have included a $25 million investment in Ozy Media to facilitate a smoother transition.
"Mr. Watson was a critical part of Ozy Media, and we were considering making an investment in the company to make the transition easier," Pichai testified. When pressed by prosecutor Dylan Stern on whether Google had ever offered a $600 million purchase price for Ozy, Pichai responded with a definitive "No."
Prosecutor's Case Against Watson
During his opening statement, Stern detailed how Watson allegedly used the fabricated Google acquisition offer to attract further investments, even after the Goldman Sachs deal fell through. "Watson found another victim and lured them into investing $20 million into Ozy by telling them that the CEO of Google himself had offered to purchase Ozy for hundreds of millions of dollars," Stern revealed. "That was a lie. But Watson did not let the truth stand in his way."
Limited Interactions Between Watson and Pichai
Despite Watson's claims of a significant relationship with Pichai, the Google CEO indicated that their interactions were minimal. The duo had only spoken briefly on two occasions: a brief meeting at a conference and a more extended conversation during a job interview for Watson on February 25, 2021, held shortly after the Goldman Sachs incident. Ultimately, Watson did not secure the position at Google.
The ongoing trial continues to draw attention, as more details unfold regarding the alleged fraudulent practices within Ozy Media and the impact on its investors.
