Sequoia VC says ‘Google was the savior’ for YouTube at antitrust discussion board
Scott Mlyn | CNBC
“The killing fields at YouTube, it actually wasn’t Google. The killing fields had been referred to as Common, Warner, Sony with their battalions and phalanxes of attorneys, their ferocious assault canine brokers, who had been making these extraordinary threats of annihilation to this little firm that for the primary eight or 9 months of their existence labored out of our workplace,” Moritz mentioned, referring to a few music corporations that had aired complaints about alleged copyright infringement on YouTube’s service previous to the sale.
These corporations every acquired a small stake within the firm within the take care of Google, The New York Instances reported on the time, as a part of the licensing offers they reached shortly earlier than it was negotiated. Common Music Group, Warner Music and Sony Music didn’t instantly reply to CNBC’s request for remark.
“They had been the killers, Google was the savior,” mentioned Moritz, whose agency had a reported 30 % stake in YouTube on the time of the sale. “Which is why YouTube right now thrills, entertains, amuses and diverts a whole bunch of tens of millions of shoppers around the globe. No person tells that story.”
Moritz made the statements at a public workshop on enterprise capital and antitrust hosted by the Division of Justice Antitrust Division at Stanford College. Moritz was explaining why he usually is against Sequoia portfolio corporations exiting by a sale, however provided YouTube as a counter instance of a time the place it made sense to promote.
His take comes as federal antitrust enforcers are focusing in on previous acquisitions by Large Tech corporations together with Google. The Federal Commerce Fee introduced Tuesday it was launching a analysis research into 5 tech companies to look at previous acquisitions that weren’t required to be reported to federal enforcers underneath the Hart-Scott-Rodino Act.
This evaluation is separate from legislation enforcement motion and being pursued by the FTC’s Workplace of Coverage Planning to know how small acquisitions gas tech corporations, significantly with information. Google’s acquisition of YouTube won’t be a spotlight of the evaluation as a result of it had been reported and cleared by legislation enforcement on the time. Nonetheless, FTC Chairman Joe Simons emphasised that any findings of potential wrongdoing through the research might turn out to be legislation enforcement issues.
Moritz argued on the discussion board that antitrust considerations round tech have performed out earlier than, referencing considerations about IBM and Microsoft in many years previous. Regardless of the common fear round dominant tech gamers, new companies have constantly managed to rise to the highest, Moritz argued, although he glossed over the position that enforcement of antitrust legal guidelines might need performed in that outcome.
“Each time we put money into a small firm, there may be each motive to imagine that that is mission inconceivable and that there are surrounding forces that may make the journey very troublesome,” Moritz mentioned, “and over and over, repeatedly, regardless of all of the naysayers, that has by no means confirmed actually to be the case.”
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