Posted May 1, 2008 2:37 pm by with 16 comments

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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.

  • I also think it’s a a load of crap. Google isn’t exactly picture perfect.

  • Jordan McCollum

    Great post, Janet! Love the title, love your take, love your tone. Now I know I can dial back my snark-o-meter for the rest of the day—you got it under control 😉 .

  • Charging for video hosting. Good bye to millions of teenage daily vlogs, LOL.

    Jaan Kanellis’s last blog post..Today is RSS Awareness Day

  • Jestep

    Google is the definition of evil. They take industries and make them free, killing the existing businesses. They would like to make a commodity out of everything. If google had their way, they would be the only business on earth.

  • Janet Meiners

    You’re my inspiration – you totally have the snarkiness nailed 😉

    Here’s my only regret – I don’t have the graphic design skills to do. I wanted a superhero graphic with a “G” on the chest and Eric Schmidt’s face.
    Too bad it would take me hours and still look horrid.


  • I agree with Jestep…Having Google merge with Yahoo, will make them the greatest company ever…

  • Fred

    I think Google is already a dangerous internet company with it’s monopoly and website penalization strategies, merging with Yahoo would be a complete disaster for website owners. Google would then own practically all of web search – they could then kill any website/business they wanted.

  • Monitize YouTube? Why not. Everything is monitized these days. Why not have it become a subscription site?

    Say $7, $17, $27 a month. That’s the way everything is going. It’s over the top. G can afford the bandwidth anyways. All they have to do is keep “slapping” people around. There good at that.

  • There always are different ways at looking at same point. While I love Google – I also belief that a stronger competition for Google could challenge Google to get even better.
    The sum of MSN and Yahoo traffic combined still would be far less than 10% of Google traffic in my high traffic web site. Hence I see no threat from a virtual “marriage” of the 2 “e-dwarfs”. MSN never has been popular in Search Engine, nor in anything else …
    thus ONE foul egg joining a good “cake” spoils the cake more than the good egg saves the foul egg.
    Means the marriage of MSN with Yahoo may spoil Yahoo reputation more than helping MSN.
    It certainly is an important issue on the e-market and having 3 better/stronger competitors on the search market would be much better than 2 but neither MSN nor Yahoo seem to manage to overcome their past outdated way of doing things.

  • Goo-Hoo! Anyone?

    For the biggest player to want to absorb the second biggest player, rather than see the second and third biggest players amalgamate into what could be a potentially dangerous adversary reeks of mopolistic behaviour.

  • Steve Brown

    Puuuleease …. Google as good guys?
    As long as Yahoo doesn’t mind feeling like a excess son at a FLDS Texas compound.

    Anyone who does business with Goog and MaGoog sure know how the brides feel.

  • Pingback: Boycott Novell » Links XX/04/2008: Inconsistent Yahoo Stories; Data Corruption Bugs in SPs of Windows XP and Vista()

  • I don’t like MS too.

    Elections guy’s last blog post..Polls before Pennsylvania primary: Obama most popular

  • This is a great topic. And certainly one that deserves some really close scrutiny. In fact I wrote about some potential motives for Google, Yahoo and Microsoft on my blog
    While google and yahoo may like each other, business is business. If you read my blog you have to consider what kind of monster google could become if they are not challenged.

  • well bought MS and google are evil, or are they? they are just efficient businesses and are looking after their shareholders who i believe love them very much.

  • I don’t think MS is so evil like everybody are saying… Google is or could be evil or more than MS… the search market need to have more players and MS is the only one that can fight with Google. Google also, is taking much more effort to destroy other Internet players as you can see with it’s new 3D environment to fight with Linden’s, the GMail came with fight with all free mail and last month, they are hosting web sites and small apps with databases… so… fighting with all multbillion hosting marketing… but nobody said that is not good… So… we have to wait and see how the things will come… to me, Yahoo must to close this deal with MS… just to make a good balance.