"I wish [South by Southwest] was a month later because I could unveil the new product," Hurley said during a Q&A with Digg founder and Google Ventures partner Kevin Rose on Saturday afternoon. Without going into too much detail, he said the product is "primarily video-based...and gives flexibility for people to work together and create content."
Hurley says some of the deal talks happened at a South Bay Denny's, as Yahoo was eyeing involvement.
"We met with Eric [Schmidt] and Sergey [Brin] at Denny's in Redwood City [to talk about the possibility of selling YouTube]. We met there the week before with [Yahoo’s] Jerry [Yang] and Terry [Semel]," he said, noting that Semel had suggested the locale because it was "very low-key and had great breakfast."