$100 million here, $100 million there

Last week Google CEO Eric Schmidt denied a rumor (promoted by Mark Cuban) that Google had set aside $500 million of its $1.65 billion purchase price for YouTube as a reserve to cover copyright infringement claims. When asked whether “a very large sum of money was set aside to buy peace” with holders of video copyrights Schmidt replied that was “not true.” (1) Yesterday it was reported that Google had reserved approximately $200 million of the purchase price to deal with copyright issues by escrowing 12.5 percent of the stock it owes YouTube for one year. When Google closed the YouTube acquisition earlier this week the 3.66 million shares promised to YouTube were worth $1.79 billion–a $140 million increase since the deal was announced in October. The escrowed stock amounts of 457,000 shares with a value of about $224 million, based on Tuesday’s closing price of $489.30/share. (2)

What does Eric Schmidt consider to be “a very large sum of money?”

(1) Reuters, Google denies rumor of YouTube legal reserve, c/net News.com 8-Nov-06; (2) Associated Press, Google reserves $200 million from YouTube deal for copyright issues, SiliconValley.com, 14-Nov-06; Michael Arrington, Google Closes YouTube Acquisition, TechCrunch, 13-Nov-06

4 Replies to “$100 million here, $100 million there”

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