BEIJING, Feb. 9 (Xinhuanet) -- The recent 1.76
billion U.S. dollar purchase of YouTube by Google Inc. has made millions of
dollars for a diverse group ranging from the company's founders, to its
office manager, to TV celebrities, to Silicon Valley executives and two of
America's most prestigious universities.
YouTube's co-founders, Chad Hurley, Steve Chen and
Jawed Karim are the biggest winners, collectively receiving nearly 700
million dollars worth of Google stock -- the prized currency used to
finance the acquisition.
The meteoric rise of YouTube had its
beginnings in a Menlo Park, Calif., garage two years ago when Hurley, Chen
and Karim -- all of whom are in their 20s -- sketched out an idea for a
video sharing site that was initially funded by credit card debt.
The Google deal also made instant millionaires out of
at least 18 other YouTube employees, including Hurley's younger brother, Brent,
and the office manager, according to a Securities and Exchange Commission filing
Wednesday. Hurley's parents also are getting nearly 5 million dollars in Google
stock.
Some who profited from the megadeal, such as TV talk
show host Maury Povich, didn't even realize they had invested in YouTube.
Povich has not always been a big fan of YouTube Inc.
because the online video sharing pioneer frequently displays unauthorized clips
from his copyrighted program. But he changed his mind when he found out
that he would receive a windfall profit of more than 80,000 dollars.
"It's like I caught lightning in a jar," Povich said
in a Thursday interview. "I had no idea I even owned a part of YouTube."
Povich's piece of the pie came through a small
investment he made a few years ago to a venture capital fund managed by Sequoia
Capital, a Menlo Park firm that parlayed an 11.5 million dollar investment in
San Bruno, California-based YouTube into one of Silicon Valley's biggest paydays
since the dot-com boom.
The eye-popping numbers revealed in the SEC
documents will probably lead to even more dealmaking, predicted Keith
Rabois, who agreed to invest in YouTube during a June 2005 barbecue.
"You can sort of look at Silicon Valley as a giant
casino where you need the slot machines to pay off at certain intervals," said
Rabois, now an executive at LinkedIn, a professional networking site. "It's
payoffs like this that makes people want to keep taking risks."
Rabois on Thursday sold about 25 percent of the
roughly 4 million dollars in Google stock he received in the sale.
While clearing the way for YouTube's employees and
investors to begin selling their Google shares, Wednesday's SEC filing also
provided a rare glimpse at the institutions and people given a chance to
participate in the venture capital funds that make risky bets on unproven
startups like YouTube.
Venture capitalists usually don't disclose the names
of their limited partners, but the YouTube sale forced Sequoia Capital to make
an exception.
The breakdown included many of the universities and
foundations that regularly pour money into venture capital funds as part of
their investment strategies.
The list also revealed that Sequoia Capital raised
money from a cross-section of Silicon Valley executives and TV personalities
like Povich and Forrest Sawyer, who currently works for NBC and MSNBC.
The prominent executives increasing their net worths
in the YouTube deal include Electronic Arts Inc. Chairman Lawrence Probst III
(5,048 Google shares worth 2.4 million dollars, Yahoo Inc. co-founder Jerry Yang
(340 shares worth 160,000 dollars and Netscape Communications co-founder Marc
Andreessen (256 shares worth 120,000 dollars.
The schools profiting from YouTube's fortune include
the University of Notre Dame (39,848 Google shares worth 18.8 million dollars)
and the University of Southern California (30,901 shares worth 14.6 million
dollars).
Povich and Sawyer each got 170 Google shares in
exchange for their investments in the venture capital fund.
This isn't the first time that a Silicon Valley
success story has enriched well-known individuals with no direct ties to the
high-tech industry.
For instance, the eclectic list of early investors in
Google included golfer Tiger Woods, former Secretary of State Henry Kissinger,
movie-star-turned-politician Arnold Schwarzenegger and basketball star Shaquille
O' Neal.
Google also shared another common denominator with
YouTube -- Sequoia Capital invested in both of them before they became household
names.
(Agencies)