In recent interview with CNBC’s Maria Bartiromo, Google’s CEO Eric Schmidt spoke out about his biggest concerns. Most pressing issue is the possible merger of Microsoft and Yahoo – which could happen as early as next week. Then there’s the problem of how to make money off YouTube – which is costing the company millions a year in hosting costs.
First, the tale of good (Google) and evil (Microsoft) and the fight over struggling Yahoo. In the interview, Schmidt talks up Yahoo’s strengths and warns about Microsoft’s evilness.
- Microsoft can’t be trusted. They have a history of antitrust issues. They take away freedom of choice and that’s the very essence of evil.
- Google likes Yahoo and Yahoo likes Google. There are mutual benefits. Together they can combine to fight against the evil forces of Microsoft.
- They go well together. Based on the positive results of a test partnership, Yahoo is considering working even more closely with Google. Yahoo ran Google ads on their network for two weeks (which raised antitrust issues against Google).
- Schmidt has had enough of Microsoft. Throughout his career Schmidt has competed against Microsoft. He doesn’t look forward to competing with them even more intensely.
On his concerns about monetizing YouTube, Schmidt indicated that so far nothing has been promising. Google needs to capitalize on their $1.65 billion investment and he called making money on YouTube this year’s highest priority. That could mean charging for video hosting after a certain limit.
My favorite quote is:
“We’ve primarily been concerned about the possibility of a Microsoft acquisition of Yahoo because of Microsoft’s history and because the assets that Yahoo has are quite valuable. And we actually think that in the wrong hands, they could be used in the wrong way.”
Google’s always been good at storytelling and being captivating. It’s a tale where Microsoft is the villain, and Google is the superhero. Google is not only rescuing the damsel in distress (Yahoo) but fighting for the right. It’s the tech drama of the year.