Google CEO Testifies At Ozy Trial, Denies $600 Million Offer

Alphabet Inc. Chief Executive Officer Sundar Pichai took the witness stand at the fraud trial of Ozy Media Inc. co-founder Carlos Watson, testifying that the search giant never had any intention of acquiring the startup for any amount of money.

Pichai's testimony comes as Watson faces accusations of defrauding investors of tens of millions of dollars by fabricating Ozy's business success, including falsely claiming that Alphabet's Google had offered to buy the company for "hundreds of millions of dollars." The once-promising media startup crumbled after a 2021 New York Times report revealed that Chief Operating Officer Samir Rao impersonated a senior executive at Google's YouTube unit during a February 2021 call with Goldman Sachs Group Inc. bankers. Rao, who pleaded guilty, testified earlier that it was part of his and Watson's scheme to deceive investors into believing Ozy was profitable.

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

"When the Goldman deal fell through, Watson found another victim and lured them into investing $20 million into Ozy by falsely claiming that the CEO of Google himself had offered to purchase Ozy for hundreds of millions of dollars," Stern said. "That was a lie, but Watson did not let the truth stand in his way."

Although Watson allegedly boasted about his relationship with the Google boss, Pichai clarified that they had only spoken twice. The first was a brief conversation at a conference, while the second was Watson's job interview on Feb. 25, 2021, weeks after the Goldman call. However, Watson didn't secure the job.

'Most Disturbing'

Also testifying on Friday was Hillel Moerman, one of two Goldman bankers who were on the Feb. 2, 2021, call when Rao impersonated YouTube executive Alex Piper. Moerman described it as "one of the most disturbing calls I've been on in my career."

"It was a surreal experience. The person spoke in an unnaturally deep voice," Moerman added.

Goldman was considering a $35 million investment in Ozy and had arranged the call after Watson claimed YouTube was one of Ozy's "most important" clients. Rao testified he'd used a voice-altering app to conceal his identity, with Watson coaching him on what to say while seated nearby.