It seems Google Inc. (NASDAQ:GOOG) CEO Eric Schmidt doesn't think the recession has hit hard enough ... yet. At a Morgan Stanley technology conference, Schmidt said that the Internet search giant has been inactive in M&A because, while it has capital available, it's waiting for prices to go lower.
One report took this to mean that Google thinks prices for
startup companies will start dropping soon.
Google execs have made other recent comments about the distance between buyers' and sellers' expectations. A Deal magazine article in December quoted Google corp dev VP David Lawee as saying
acquisitions aren't necessarily cheaper now.
The Deal article noted that besides buying proven companies like YouTube Inc., Google first looks for startups with "breakout technologies," such as Android Inc., which was quietly acquired in 2007 and provided the basis for Google's mobile platform. Then there's Keyhole Corp., its first purchase as a public company, which led to the Google Earth 3D mapping application.
Also at the Morgan Stanley conference, Schmidt was asked about rivals Microsoft Corp. (NASDAQ:MSFT) and Yahoo! Inc. (NASDAQ:YHOO) teaming up on a search deal, where Yahoo! CEO
Carol Bartz announced talks would be private.
Schmidt wished them luck but expressed continued concern over Microsoft's Windows monopoly. -
Baz Hiralal
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