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 So Google Inc. (NASDAQ:GOOG) has decided against acquiring a newspaper, its chairman and CEO Eric Schmidt told FT.com.In related news, the Somali Pirates Association announced they are not in the market to acquire ships. OK, that was harsh. Seriously though, can you imagine what the internal discussions must have been like? Schmidt: We need new acquisition targets. Forget Twitter Inc. and Facebook Inc. and Yahoo! Inc. (NASDAQ:YHOO). Let's think outside the box. (Silence) Sergey Brin (Google co-founder and president): Maybe we should go "old economy" with an acquisition. Like, buy some "bricks and mortar" business to expand our range? Larry Page (co-founder): Going old school! I like it! Schmidt: What do you have in mind, Sergey? Brin: I'm thinking content providers. Page: Huh? Schmidt (to Page): I think he's talking about a company that goes out and gathers data or something. You know, like Google News, just on a smaller scale. Brin: No, I'm actually referring to the companies that create this data in the first place. (Silence) Schmidt: I think you've lost us here. Everybody knows that data just exists. Or maybe it emerges automatically, out of nowhere. Nobody knows for sure, but that's why a company like Google is such a value-add. We are able to locate that data and then present it to the end users in a way that makes sense to them. Page: Yeah. Value-add. Google. Brin: No, there are kinds of companies that go out and gather information. They report stuff and write it. Schmidt: Oh, like bloggers? Brin: Yes, except I'm not sure how much original content bloggers create either. I mean some do, but bloggers are mainly individuals. I mean, there are actually whole l companies that do this stuff. News organizations, wire services. Think Reuters or Dow Jones or Bloomberg, just on a smaller, local scale. Page: Bloomberg, the hardware company? Schmidt: Forget it, we're not buying them. No way they would even entertain talks. Brin: No, guys, newspapers! You must remember them from when you were kids! Schmidt: Um, OK, what's the synergy here? Page: Yeah, where's the value-add? Brin: Newspapers create the content we repackage to our users when they do a search on Google News. We'd be gaining control of a supply chain resource. That's where the value-add is! Schmidt: You're crazy. Why would we buy something that is free in the first place? What's next, acquiring air? (Laughter) Page: Hey Sergey, I'll sell you some of my breath. Five dollars per cubic foot. (Laughter) Brin: All right, just forget it. OK? Schmidt: Gotta go, I have an interview with the FT. This will give me something to fill the air with, if you'll pardon the pun. Page (laughing hysterically): Oh man, you're good. Schmidt: Seriously, this will be perfect. I'll make a big deal out of it, like I'm giving the reporter a big scoop. "We have decided not to buy a newspaper." Our PR folks will love it. - Nathaniel Baker
CategoriesComments
From: Nathaniel E. Baker,
"My take" on the inner workings of Google? What do you mean my take? That's exactly how it happened! In all seriousness, the biggest mistake newspapers and other content providers ever made was giving away their product for free on the Internet. Now they're starting to change that. Will the public accept it? Much less pay for it in a recession? We shall see. Maybe this Kindle thing will save print content the way the ipod saved the music industry. One can hope...
Posted on:
May 21, 2009 2:57 PM
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I really enjoyed your take on the inner workings of Google.
Back in the day we worried about the consolidation of news gathering sources. Now that they are on the way out what's next?
You might, for daily news, place your bets on the producers of advertorials, sponsored marketing/news releases, You Tube styled expose/opinion pieces, and government supported news.
Oddly enough it may be the History Channel that replaces the in depth news programs of the 60 minutes genre.