Google has set aside 12.5 percent of the stock owed to YouTube, worth more than $200 million, in its just-completed takeover of YouTube to cover possible losses on the deal. The reserve could signal that Google is trying to insulate itself from a possible onslaught of lawsuits aimed at pirated videos posted on YouTube. But the escrow account's existence means YouTube's former owners may never receive a substantial portion of the Google stock if YouTube runs into legal trouble or incurs other losses.
November 15, 2006 at 12:00 AM
1 minute read
The original version of this story was published on Law.Com
Google Inc. has set aside more than $200 million in its just-completed takeover of YouTube Inc. to cover possible losses on the deal, creating a financial cushion that might protect the Internet search leader if it’s hit with legal bills for the frequent copyright violations on YouTube’s video-sharing site.
Without elaborating in a late Monday statement, Google said it is withholding 12.5 percent of the stock owed to YouTube for one year “to secure certain indemnification obligations.”
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