YouTube creators cashed in big on sale to Google: documents

The internet homepage of the YouTube websit
This picture taken on January 2010 in Paris shows the internet homepage of the YouTube website. YouTube's creators walked away with hundreds of millions of dollars after the startup was bought by Google in 2006, according to documents released in a copyright brawl between Viacom and Google.

YouTube's creators walked away with hundreds of millions of dollars after the startup was bought by Google in 2006, according to documents released in a copyright brawl between Viacom and Google.

While former PayPal pals Chad Hurley, Steve Chen and Jawed Karim each scored fortunes in stock by selling to the Internet giant, a that backed the online video-sharing service landed the lion's share of the wealth.

Sequoia Capital got 516 million dollars worth of Google stock as a return on approximately nine million dollars it invested in YouTube in late 2005 and early 2006, according to court documents made public this week.

Hurley's haul was worth 334 million dollars and Chen's chunk tallied 301 million dollars based on the the November day the deal with Google was sealed, according to the documents.

YouTube's third co-founder, Jawed Karim, had left the startup by then but got about 66 million dollars worth of Google stock for his share in the fledgling company, the documents indicated.

presented the evidence while trying to make its case that YouTube's founders and Google benefited from letting copyrighted videos be posted at the website.

Viacom is suing Google and YouTube for a billion dollars, arguing that they condoned pirated video clips at the website to boost its popularity.

Viacom was also a target in legal filings with Google countering that the US entertainment giant foisted some of its own content onto YouTube's online stage and even wanted to buy the firm.

Viacom attorneys contended that after YouTube was launched in 2005, the startup's strategy was to achieve meteoric growth by whatever means necessary so it would become a prize acquisition target.

YouTube was a year-old Internet sensation when Google bought it in a 1.65-billion-dollar stock deal in 2006.

Viacom filed its lawsuit against YouTube and Google two years ago.

The has been merged with similar civil litigation being pursued by the English Premier League, which says soccer game clips are routinely posted on YouTube without authorization.

Google shields itself with the 1998 Digital Millennium Copyright Act, US legislation that says Internet firms are not responsible for what users put on websites.


Explore further

Viacom-YouTube secrets to be exposed in lawsuit

(c) 2010 AFP

Citation: YouTube creators cashed in big on sale to Google: documents (2010, March 19) retrieved 2 March 2021 from https://phys.org/news/2010-03-youtube-creators-cashed-big-sale.html
This document is subject to copyright. Apart from any fair dealing for the purpose of private study or research, no part may be reproduced without the written permission. The content is provided for information purposes only.
0 shares

Feedback to editors

User comments