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Edition: U.S. Article Comments (0) Email Print Reprints Read Japan intervenes to weaken yen for 1st time in 6 years 2:48am EDT Tea Party win hurts Republicans' Senate chances 3:07am EDT Popularity can come at a price: getting flu first 14 Sep 2010 FOREX-Dollar soars, yen drops as Japan intervenes 1:04am EDT Oprah trip "Down Under" surprises Australians - with a bill | Video 14 Sep 2010 Shared Walking helps keep body and brain young 13 Sep 2010 Lady Gaga's meat dress 13 Sep 2010 B vitamins found to slow progression of dementia 09 Sep 2010 More sellers cut U.S. home prices for 3rd month 12:13am EDT Twitter remakes website, adds new features 14 Sep 2010 Watched Gaga crowned; Oprah's big trip Mon, Sep 13 2010 JLo on "Idol" Tue, Sep 14 2010 Melting glaciers expose artifacts Tue, Sep 14 2010 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. Google sites to add social networking in "layers" Tweet This Share on LinkedIn Share on Facebook Related News Google CEO warns of anemic economy Tue, Sep 14 2010 Google's Android to be world No. 2 in 2010: report Fri, Sep 10 2010 How Facebook got involved in human rights film Thu, Sep 9 2010 UPDATE 3-Google seeks to speed up Web searches Wed, Sep 8 2010 Google calls for pressure on Internet censors Wed, Sep 8 2010 Analysis & Opinion Is social media losing its lure … and return on investment? Deals wrap: Competition for Potash? Related Topics Technology » Media » By Alexei Oreskovic PARADISE VALLEY, Arizona | Tue Sep 14, 2010 7:14pm EDT PARADISE VALLEY, Arizona (Reuters) - Google Inc plans to gradually introduce social-networking features starting this fall, reviving attempts to compete with Facebook after pulling the plug on its stillborn Wave project. Chief Executive Eric Schmidt told reporters on Tuesday the Internet search leader intends to work in "layers" of social networking to its sites, rather than unveil a flashy product. To propel that effort, he intends to sustain its pace of acquisitions. "We're trying to take Google's core products and add a social component," Schmidt told a select group of reporters at Zeitgeist, a gathering of business partners and high-profile industry figures. "If you think about it, it's obvious. With your permission, knowing more about who your friends are, we can provide more tailored recommendations. Search quality can get better." Google has struggled to find the right touch in creating the types of social networking services that have become increasingly hot online. It declared the demise this year of Wave, a high-profile online communications tool launched last year. And Orkut, its early online social network, has failed to catch on outside of Brazil and India. Media reports now peg Google as developing a new social networking product -- dubbed Google ME -- in a bid to take on Facebook, which has more than half a billion users worldwide. Others speculate it might be looking for an acquisition to get into social gaming. "Everybody has convinced themselves that there's some huge project about to get announced next week. And I can assure you that's not the case," Schmidt said. A FLURRY Analysts point to recent acquisitions as signs the company is steadily beefing up its social-network capabilities. The company this year undertook a series of small to mid-sized purchases, including a $182 million deal to take over social networking firm Slide, and a $700 million offer for airline ticketing firm ITA Software Inc. Schmidt expects the last deal to win regulatory approval. He said the level of scrutiny it has drawn is similar to that for Google's acquisition of Admob, which won a green light. Analysts have attributed a recent flurry of tech-sector acquisitions to a perception that valuations remain low, a product of a sputtering economy as well as persistent doubts about the strength of the tech sector recovery. In an exclusive interview with Reuters on Tuesday, Schmidt said he did not expect another recession soon, but warned of slow, or even zero, growth over the next few years. "It's unlikely we'll have a double dip for all the reasons people talked about. A much more likely scenario is slow or no growth for a few years," Schmidt said in the interview. "High tech is different. High-tech seems to be benefiting from new product cycles, lots of new investments," he added. "So high tech will probably have a different outcome from the average American (consumer)." (Additional reporting by Chrystia Freeland; Editing by Gary Hill and Steve Orlofsky) Technology Media Add a Comment *We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language or appear to be spam and 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. © Copyright 2010 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 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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