Google CEO: We are “unlikely” to buy Twitter soon
Using an interesting turn of phrase, and in response to a question from Charlie Rose, the CEO of Google has said that the search giant is “unlikely” to purchase Twitter anytime soon.
During an interview with public television personality Charlie Rose on Friday, Eric Schmidt, CEO of Google, said, “I shouldn’t talk about specific acquisitions. We’re unlikely to buy anything in the short term partly because I think prices are still high. And it’s unfortunate I think we’re in the middle of a cycle. Google is generating a lot of cash. And so we keep that cash in extremely secure banks.”
This did not tie in too neatly with what Schmidt had said earlier in the week regarding Twitter. In the course of an on-stage chat at the Morgan Stanley Technology Conference in San Francisco, Schmidt defined Twitter as a “poor man’s” e-mail system. Schmidt continued, “They have aspects of an e-mail system, but they do not have a full offering. Twitter’s success is wonderful and it shows you that there are many, many ways to reach and communicate, especially if you are willing to do so publicly.”
Although that does not sound like a man who may be in the market to buy a micro-blogging site, some of the other things Schmidt said at the Morgan Stanley conference sound more like a fellow who may be considering it, according to a CNET article. Specifically, he said, “The good news is we have lots of capital. The bad news is we’re still trying to get everybody into the model that we really want in terms of M&A [Mergers and Acquisitions]. And I think it’ll start soon, but it’s pretty inactive right now.”
Twitter might be an interesting acquisition for Google. It would extend the search giant further into the social networking milieu, a direction for which it has indicated a liking. And Google certainly has a great deal of expertise in managing high-volume applications and Web sites, something with which Twitter could use some help, given the frequent appearance of the “fail-whale” when their site is down. It might not be a marriage made in heaven, but it is one from which both parties could benefit.
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The days of companies buying money black holes is well and truly over. Twitter is a great amusement, but until someone works out how to make a buck, its future is uncertain – especially now with the recession biting in.
March 9th, 2009
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