Google saved YouTube, so Big Tech isnt always harmful to start-ups, argues top Silicon Valley investor
Summary
Sequoia partner Michael Moritz defended Googles 2006 acquisition of YouTube, saying it "saved" the video service in the $1.65 billion deal, as it was being ravaged by copyright threats over unlicensed music that users were posting. Moritz was explaining why he typically is opposed to Sequoia portfolio companies exiting through a sale, but offered YouTube as a counter example of a time where it made sense to sell. This review is separate from law enforcement action and being pursued by the FTCs Office of Policy Planning to understand how small acquisitions fuel tech companies, particularly with data. Despite the regular worry around dominant tech players, new firms have consistently managed to rise to the top, Moritz argued, though he glossed over the role that enforcement of antitrust laws might have played in that result. "Every time we invest in a small company, there is every reason to believe that this is mission impossible and that there are surrounding forces that will make the journey very difficult," Moritz said, "and over and over again, repeatedly, despite all the naysayers, that has never proven really to be the case.