$200 Million in Holdbacks in Google YouTube Dealposted by MR WAVETHEORY at 11/15/2006 04:12:00 AM
12.5% of the equity issued and issuable in the transaction will be subject to escrow for one year to secure certain indemnification obligations.This is very ironic given that Eric Schmidt publicly stated just a few days prior that there was no holdback on the deal.
In a two-part question, Battelle asked whether Google's deal included a secret reserve for legal claims and, secondly, what progress Google was making in striking licensing deals with media companies to avoid threats of legal action.
"The former is not true," Schmidt said in response to the question of whether "a very large sum of money was set aside to buy peace" between YouTube and big media companies.
Eric is the master of equivocation. Batelle should have asked not whether there is a reserve, but whether $200 million enough?