Google CEO Sundar Pichai testified in the federal financial conspiracy trial of Ozy Media founder Carlos Watson. Pichai denied claims that Google had offered to purchase Ozy Media for $600 million, stating that Google had considered hiring Watson for a high-level news executive job in 2021. The potential hire and a $25 million investment did not ultimately happen. Ozy Media, known for producing TV programs, podcasts, and a music-and-ideas festival, collapsed in fall 2021 amidst questions about its audience reach, deals, and finances.
Prosecutors allege that Watson told a prospective investor that Pichai had extended a nine-figure offer to buy Ozy. Ozy Media lawyer Shannon Frison denied these claims, stating that Watson never had such a conversation with Google. Watson and Ozy Media have pleaded not guilty to charges including conspiracy to commit fraud. Defense lawyers attribute any misrepresentations to Ozy co-founder Samir Rao, who pleaded guilty to identity theft and conspiracy to commit fraud and is awaiting sentencing.
Rao testified that his moral compass was compromised by ambition, desperation to keep the company afloat, and pressure from Watson to succeed at all costs. He infamously posed as a YouTube executive on a call with Goldman Sachs investment bankers in February 2021 to promote Ozy. Goldman Sachs executives were suspicious of the call, and the ruse was uncovered. Rao claimed that Watson was texting him during the call, trying to guide the conversation. Defense lawyers argue that Watson entered the room during the call and attempted to end it once he realized the deception.
Goldman Sachs executives recalled the call as a surreal experience, with one noting that the supposed YouTube executive’s voice sounded off. The actual YouTube executive was contacted, leading to the unraveling of the ruse and the end of a potential investment from Goldman Sachs. Despite the deception, Goldman Sachs continued advertising with Ozy after Watson told them that Rao was experiencing a mental health crisis. Rao admitted to taking antidepressants at the time but denied having a psychiatric break.
The trial has shed light on the collapse of Ozy Media and the alleged fraudulent activities that led to the company’s demise. Prosecutors are seeking to hold Watson and Ozy Media accountable for their actions, while defense lawyers argue that Rao was the mastermind behind the deceitful practices. Pichai’s testimony provides insight into Google’s interactions with Ozy and refutes claims of a potential acquisition. The trial continues to unfold as more details about Ozy’s downfall and the roles of its key players emerge.
