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Wednesday, 1 June 2011 - Google wanted to team with Facebook, now fierce rival |
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    Edition: U.S. Article Comments (1) Follow Reuters Facebook Twitter RSS YouTube Read Analysis: Could a cyber war turn into a real one for U.S.? 31 May 2011 Debt-limit hike fails in House in symbolic vote 31 May 2011 On 911 call, Casey Anthony said tot was missing for 31 days 31 May 2011 Dutch seaside cell for Mladic 31 May 2011 Blake Lively "nude" pictures fake, publicist says 31 May 2011 Discussed 61 Judge voids controversial Wisconsin union law 51 Speculation grows over Sarah Palin’s 2012 plans 51 Air France jet crashed nose-up after 4 minute ordeal Watched Massive Australian waterspout caught on film Mon, May 30 2011 Scientists revive ancient spider in stunning 3D detail Tue, May 24 2011 GM pulls the plug Fri, May 27 2011 Google wanted to team with Facebook, now fierce rival Tweet Share this By Alexei Oreskovic and Sarah McBride PALOS VERDES, Calif./SAN FRANCISCO (Reuters) - Google Inc confessed it tried unsuccessfully to team up with Facebook, as the search giant adapts to a shifting technology landscape and strives to maintain... Email Print Related News Google takes wraps off pay-by-phone system Thu, May 26 2011 UPDATE 4-Google takes wraps off pay-by-phone system Thu, May 26 2011 Google to unveil mobile payments Thursday: source Tue, May 24 2011 Search engine Yandex up 55 percent on debut Tue, May 24 2011 Sarkozy's Web initiative faces reality check Tue, May 24 2011 Analysis & Opinion Tech wrap: EBay sues Google in mobile payment war Tech wrap: Microsoft backs Ballmer Related Topics Technology » Small Business » Media » Facebook » Google's Chief Executive Officer Eric Schmidt poses during an interview with Reuters at Google's headquarters in Buenos Aires March 4, 2011. Credit: Reuters/Enrique Marcarian By Alexei Oreskovic and Sarah McBride PALOS VERDES, Calif./SAN FRANCISCO | Wed Jun 1, 2011 1:16am EDT PALOS VERDES, Calif./SAN FRANCISCO (Reuters) - Google Inc confessed it tried unsuccessfully to team up with Facebook, as the search giant adapts to a shifting technology landscape and strives to maintain growth. Google Executive Chairman Eric Schmidt told a conference on Tuesday that social networking site Facebook had rebuffed its entreaties to do a deal, while acknowledging he had not pushed hard enough to address the rising threat posed by Facebook during his tenure as CEO. "Three years ago I wrote memos talking about this general problem. I knew that I had to do something and I failed to do it," Schmidt said. "A CEO should take responsibility," he said. "I screwed up." Schmidt, who ended his 10-year run as CEO in April and handed the reins to 38-year-old Google co-founder Larry Page, made the comments at the D9 conference organized by the blog AllThingsD. Google, which generated roughly $29 billion in gross revenue last year, is the world's No.1 search engine. But its core advertising business is under threat from rapidly growing upstarts such as Facebook and Groupon, while the emergence of new computing gadgets has spurred a growing rivalry with iPhone-maker Apple. During a nearly 90-minute onstage interview, Schmidt discussed the increasingly competitive landscape, as well as the growing privacy and regulatory scrutiny it is facing. But he seemed dismissive of software giant Microsoft, which was "not driving the consumer revolution." A former Apple board member, Schmidt admitted their relationship had gotten "rough" as Google began to develop its Android smartphone operating system, though they remained partners in certain businesses. Google recently renewed a partnership with Apple in which Google provides map technology featured on the iPhone, he said. GROUPON, AND GOOGLE Giving the audience a glimpse of efforts to jumpstart growth, Schmidt showed off a new online coupon service slated to launch in Portland, Oregon Wednesday, that will allow the online giant to compete with Groupon and its ilk. He said the company will soon announce thousands of merchants for a service twinned with a mobile-payments system that lets consumers tap their phones to pay at the checkout counter. [ID:nN26241064] Schmidt is among the more than a dozen tech industry executives slated to speak at the conference, taking place this week at an upscale resort in Southern California. Other scheduled speakers include the chief executives of Walt Disney Co, Hewlett-Packard, Twitter, Zynga, Groupon and Alibaba. With more than 26,000 employees, Google has used its vast resources to expand into various markets beyond Web search, including phone and television, online productivity software and even electronic books. Its Android software has become the No. 1 smartphone operating system after less than three years on the market. But investors are increasingly impatient to see a return from these initiatives, and fret that new CEO Page's free-spending ways may pressure profit margins. Shares of Google, which underperformed the market in 2010, are down roughly 16 percent since the company announced in January that Page would replace Schmidt. Asked about the difference between his stint as CEO and Page's, Schmidt said that Page would have "much greater product rigor" and move even more quickly than he was able to. One of the areas some Wall Street investors complain it has not moved swiftly enough, is social networking. Schmidt did not specify what sort of deal with Facebook he had tried to secure, but noted that Google's search could be improved with access to Facebook's vast trove of data about Web surfers' friends and acquaintances. "We tried very hard to partner with Facebook," Schmidt said. "They were unwilling to do the deal," he added, noting that Facebook had traditionally partnered with Microsoft. (Additional reporting by Edwin Chan; Editing by Dhara Ranasinghe) Technology Small Business Media Facebook Related Quotes and News Company Price Related News Tweet this Link this Share this Digg this Email Reprints   We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language, all capital letters or appear to be spam, and we review comments frequently to ensure they meet our standards. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. Comments (1) hyperlux wrote: Yeah. FBook went with Bing instead. And its heinous search results appear as redirects from random places (searches for groups are just as likely to end up with a Bing results list instead!). I suppose FBook wants to tie itself to the plunging anchor of MS, to give it some gravitas. Let be. Thank god I have stock in neither company. Jun 01, 2011 1:27am EDT  --  Report as abuse See All Comments » Add Your Comment Social Stream (What's this?) © Copyright 2011 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index Reader Feedback   Mobile Newsletters RSS Podcasts Widgets Your View Analyst Research Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts Venture Capital Journal International Financing Review Project Finance International PEhub.com PE Week FindLaw Super Lawyers Attorney Rating Service Reuters on Facebook Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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