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Google keeps $200m for lawsuits

San Francisco - Google Inc has set aside more than $200m in its just-completed takeover of YouTube Inc to cover possible losses on the deal.This creates a financial cushion that might protect the internet search leader if it is hit with legal bills for the frequent copyright violations on YouTube’s video-sharing site.

Without elaborating in a late on Monday statement, Google said it is withholding 12.5% of the stock owed to YouTube for one year “to secure certain indemnification obligations”.

The Mountain View-based company disclosed the escrow account in an announcement commemorating the completion of its much-anticipated YouTube acquisition. As of Tuesday afternoon, Google representatives had not responded to requests for more details about the escrow account.

Buying San Bruno-based YouTube cost Google 3.66 million shares of its prized stock, including a convertible warrant. As of Tuesday, those shares were worth $1.79bn - above the targeted purchase price of $1.65bn announced last month.

         
         
         
         
         
   

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