It's 'better for competition, for innovation,' Schmidt says
(InfoWorld) SAN FRANCISCO -- Google Inc. believes an independent Yahoo Inc. is better for the marketplace than one that becomes part of Microsoft Corp., Google Chairman and CEO Eric Schmidt said yesterday.
Schmidt was the featured speaker at a Syracuse University Newhouse School event in San Francisco, where he commented not only on Microsoft, but also on topics such as the monetization of Internet services, the potential for mobile-based ads and privacy issues.
Animosity between Google and Microsoft was apparent, with Schmidt saying that Microsoft's history has shown that the software maker, with its Windows platform and market power, has had the ability to prevent choice. Such a capability could be brought about by a merger or similar agreement between Microsoft and Yahoo, Schmidt said.
"We think an independent Yahoo is better for competition, for innovation and so forth," Schmidt said.
Interviewer Ken Auletta of The New Yorker magazine asked whether Google has been trying to block Microsoft's proposed acquisition of Yahoo or a partnership with it. Microsoft CEO Steve Ballmer has said this himself, Auletta said.
Schmidt acknowledged reports that Google has been seeking a partnership with Yahoo. But Schmidt denied that Google could affect any partnership between Microsoft and Yahoo. "It would seem to me that that decision is up to Yahoo, not to Google," Schmidt said.
He added that any partnership between Google and Yahoo would be structured so that there would be no antitrust issues.
Asked if Google was a "one-trick pony," only vested in search, Schmidt cited Google efforts ranging from cloud computing to Google Maps and geospatial technology. But monetizing various initiatives remains a challenge, he said.
"The goal of the company is not to monetize everything; the goal of the company is to change the world," Schmidt said. Monetization is a way to pay for that, he said.
The Internet lacks successful monetization models, but advertising is one that has worked, Schmidt said. Google, for its part, also does not know exactly how it will make significant amounts of money from its ownership of YouTube Inc., he said.
People are consuming more media online but paying less and less for it, Schmidt said. That is bad for Google because the company depends on high-quality content, he said.
Social networking sites will become a destination for advertising, he said. "The traffic is phenomenal, and there will be advertising," Schmidt said. He also said that information in social networks should be searchable.
In addition, mobile systems offer lucrative opportunities for targeted advertising, Schmidt said.
He also offered reassurances about privacy issues. Google has an interest in maintaining trustworthiness, Schmidt said. If the company could not be trusted, "you wouldn't go back to Google; you'd go somewhere else," he said. Google does not track user data, he said.
Schmidt also recognized the likelihood that the Google-backed Android mobile platform would compete with Apple Inc.'s iPhone.
"Both Apple and Google believe that the mobile space is going to be very large," Schmidt said.
Schmidt expressed excitement over the possibilities of artificial intelligence, particularly language conversion. "That alone will have a phenomenal impact," he said. Google has a translation service called Google Translate, currently in a beta.
Schmidt also denied any interest in serving as a running mate to likely Democratic presidential nominee Sen. Barack Obama, emphasizing a commitment to Google.
(InfoWorld) SAN FRANCISCO -- Google Inc. believes an independent Yahoo Inc. is better for the marketplace than one that becomes part of Microsoft Corp., Google Chairman and CEO Eric Schmidt said yesterday.
Schmidt was the featured speaker at a Syracuse University Newhouse School event in San Francisco, where he commented not only on Microsoft, but also on topics such as the monetization of Internet services, the potential for mobile-based ads and privacy issues.
Animosity between Google and Microsoft was apparent, with Schmidt saying that Microsoft's history has shown that the software maker, with its Windows platform and market power, has had the ability to prevent choice. Such a capability could be brought about by a merger or similar agreement between Microsoft and Yahoo, Schmidt said.
"We think an independent Yahoo is better for competition, for innovation and so forth," Schmidt said.
Interviewer Ken Auletta of The New Yorker magazine asked whether Google has been trying to block Microsoft's proposed acquisition of Yahoo or a partnership with it. Microsoft CEO Steve Ballmer has said this himself, Auletta said.
Schmidt acknowledged reports that Google has been seeking a partnership with Yahoo. But Schmidt denied that Google could affect any partnership between Microsoft and Yahoo. "It would seem to me that that decision is up to Yahoo, not to Google," Schmidt said.
He added that any partnership between Google and Yahoo would be structured so that there would be no antitrust issues.
Asked if Google was a "one-trick pony," only vested in search, Schmidt cited Google efforts ranging from cloud computing to Google Maps and geospatial technology. But monetizing various initiatives remains a challenge, he said.
"The goal of the company is not to monetize everything; the goal of the company is to change the world," Schmidt said. Monetization is a way to pay for that, he said.
The Internet lacks successful monetization models, but advertising is one that has worked, Schmidt said. Google, for its part, also does not know exactly how it will make significant amounts of money from its ownership of YouTube Inc., he said.
People are consuming more media online but paying less and less for it, Schmidt said. That is bad for Google because the company depends on high-quality content, he said.
Social networking sites will become a destination for advertising, he said. "The traffic is phenomenal, and there will be advertising," Schmidt said. He also said that information in social networks should be searchable.
In addition, mobile systems offer lucrative opportunities for targeted advertising, Schmidt said.
He also offered reassurances about privacy issues. Google has an interest in maintaining trustworthiness, Schmidt said. If the company could not be trusted, "you wouldn't go back to Google; you'd go somewhere else," he said. Google does not track user data, he said.
Schmidt also recognized the likelihood that the Google-backed Android mobile platform would compete with Apple Inc.'s iPhone.
"Both Apple and Google believe that the mobile space is going to be very large," Schmidt said.
Schmidt expressed excitement over the possibilities of artificial intelligence, particularly language conversion. "That alone will have a phenomenal impact," he said. Google has a translation service called Google Translate, currently in a beta.
Schmidt also denied any interest in serving as a running mate to likely Democratic presidential nominee Sen. Barack Obama, emphasizing a commitment to Google.
