<![CDATA[Valleywag: Eric Schmidt]]> http://cache.gawker.com/assets/base/img/thumbs140x140/valleywag.com.png <![CDATA[Valleywag: Eric Schmidt]]> http://valleywag.com/tag/eric schmidt http://valleywag.com/tag/eric schmidt <![CDATA[ Architect got rich from Google campus Eric Schmidt hates ]]> Architect Clive Wilkinson just finished building his own home in southern California. In a profile, the New York Times calls it "the house that Google built." Wilkinson is best known for his $15 million renovation in 2006 of the company's Mountain View headquarters, which a curator Paola Antonelli at the Museum of Modern Art calls "not offices," but "memorable places for people to work in new ways.” If by "new ways" Antonelli means "grumpily," then it seems Googlers would agree.

Wilkinson himself only considers the Googleplex redesign “partially successful.” The Times reports:

Many engineers and the company’s chief executive, Eric E. Schmidt, were not happy with the shock of change, including orange and green carpets, glass workrooms with yurt-like tented fabric roofs to absorb reverberations and “clubhouses” with beanbag chairs for brainstorming that some employees just avoid. “The acoustics in the yurts made people woozy,” said a Google executive who asked to remain anonymous to protect his job. While neither Google nor Mr. Schmidt would comment, Mr. Schmidt, by many accounts, moved out of the building and his large glass office into a tiny but secluded space. “Tour groups and passersby were always rapping on his glass wall to say hi,” said the Google executive. “Eric felt it was unproductive.”

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Fri, 29 Aug 2008 08:40:00 PDT Nicholas Carlson http://valleywag.com/index.php?op=postcommentfeed&postId=5043489&view=rss&microfeed=true
<![CDATA[ Schmidt: Yahoo search deal takes effect in October ]]> In June, Google said the U.S. Department of Justice could take three and half months to investigate its search marketing deal with Yahoo. Time is almost up, Google CEO Eric Schmidt yesterday told Bloomberg TV, saying that Google has decided the agreement will proceed by early October. "We are going to move forward,'' said Schmidt.

We are in the process of talking to the government. They've not indicated one way or the other how they're dealing with us. We always worry a little bit, but we think our arguments are pretty strong. Yahoo has made it very, very clear they're going to take the best parts of their network and ours and combine them.'

(Photo by World Economic Forum)

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Fri, 29 Aug 2008 07:40:00 PDT Nicholas Carlson http://valleywag.com/index.php?op=postcommentfeed&postId=5043419&view=rss&microfeed=true
<![CDATA[ Google food manager charged with double-dealing ]]> The brouhaha over Google's once-legendary, now troubled free-meals perk has bubbled up more charges of wrongdoing in the search engine's kitchens. An anonymous poster has taken to Craigslist to air charges against Google's former global food manager, John Dickman. (The post refers to him as "Dick," but it's obviously Dickman being discussed.) The Craigslist poster claims Dickman, left, who is married to Lisa McEuen, right, an executive at the parent company of food-service operator Bon Appétit, with leaking inside information which helped Bon Appétit win a contract to run Google's in-house meal service.

The poster claims Dickman then arranged to get a kickback from Bon Appétit. Google, he goes on to write, investigated Dickman and Bon Appétit, going as far as testing fruits and vegetables, presumably to see if they met Google's high standards for organic and sustainable ingredients. The implication there: Bon Appétit had been feeding Googlers slop dressed up as fancy fare. The end of the Craigslist poster's story: Dickman was brought before Google's board and fired. All juicy gossip — but there's one thing that doesn't make sense about this whole tale.

Dickman is now working at Apple, a company with close ties to Google. Google CEO Eric Schmidt is on Apple's board of directors. Apple directors Bill Campbell and Al Gore are important advisors to Schmidt. If Dickman left Google in a cloud, how could he possibly land a job at Apple? Either the poster's allegations aren't true — or something darker is going on here. One possible explanation: Google's leaders might have arranged for Dickman to get a job with their friends at Apple in exchange for buying his silence on other matters.

Here are excerpts from the original post on Craigslist:

Disclaimer: I don't work at Google. I probably never will. I'm not smart enough. As far as I can tell, almost nobody is. So it goes.

From a friend of a friend of a friend of a friend, comes the following strange story ...

It seems that once upon a time, there was a guy - we'll call him Dick.

'Dick' was director of food services for a really big dot-com.

'Dick' had a wife. She was a highly placed executive at Bon Appetit....

It's not clear exactly HOW Bon Appetit came to acquire the Go^H^H big dot-com's contract. Right there, some thorny questions can be asked ... like, whether inside information influenced Bon Appetit's bid? ...

It seems that 'Dick' negotiated, it is alleged, two deals - the second deal translated into a end-of-the-year 'rebate' check being cut by B. A. and delivered to, yes, you guessed it, 'Dick'.

To make matters worse B. A., it has been said, did not deliver what they contracted to deliver, to big dot-com's cafeteria(s). Apparently there was a little watering down of quality, a little substitution here and there going on.

Big dot-com, it is said, did an audit. What sort of audit? It seems likely that there were private investigators involved ... I'd surmise a few bugs, here and there ... and maybe some chemical and DNA profiling of fruits and vegetables.

(If 'Dick' was like every other 'dick' I've ever known, he lined up every week to have his car detailed by the inhouse auto detailing service - so installing a bug in his car, as well as retrieving the audio, would have been child's play. Note to would-be 'dicks' ... don't be a dick.)

'Dick' was invited to a meeting of the BoD, I hear, and given two choices - resign, or be terminated. He's outta there, now....

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Wed, 27 Aug 2008 14:00:00 PDT Owen Thomas http://valleywag.com/index.php?op=postcommentfeed&postId=5042669&view=rss&microfeed=true
<![CDATA[ Eric Schmidt on Jim Cramer's Mad Money, the 60-second version ]]> Eric Schmidt spent 18 minutes on CNBC yesterday talking to Mad Money's Jim Cramer, but per usual, the Google CEO didn't say much. Only about 60 seconds worth, we discovered after boiling the segment down to its crucial bits. Learn that Google is bad economy-proof, YouTube doesn't make money (and doesn't need to), and that shareholders should just stay quiet in the clip above.

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Thu, 14 Aug 2008 08:40:00 PDT Nicholas Carlson http://valleywag.com/index.php?op=postcommentfeed&postId=5036980&view=rss&microfeed=true
<![CDATA[ Schmidt: YouTube might just be a loss-leader ]]> Loudmouth Mark Cuban mockingly characterizes Google — which still can't figure out how to make money off YouTube — as the vendor who brags: "we are losing money on every sale, but we will make it up in volume."But Google CEO Eric Schmidt doesn't deny the charge. On Jim Cramer's Mad Money yesterday, Schmidt said "Eventually, we'd like to make some money of out [YouTube], but even if we don't, even if ultimately its a loss leader, the fact that so many people come to YouTube means they ultimately come to Google and click on ads." The numbers back up Schmidt's claims. According to ComScore, in June 2008 YouTube pointed 2.4 million search queries through Google search — just a couple hundred thousand fewer than Yahoo search.

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Thu, 14 Aug 2008 07:20:00 PDT Nicholas Carlson http://valleywag.com/index.php?op=postcommentfeed&postId=5036927&view=rss&microfeed=true
<![CDATA[ How Eric Schmidt funds Wendy Schmidt, tax-free ]]> We always wondered what, exactly, Wendy Schmidt saw in her husband Eric, the billionaire CEO of Google who sometimes prefers the company of other women. A review of the couple's charitable ventures makes things clearer. The Schmidt Family Foundation, which reported $84 million in assets in December 2006, has handed out some grants since its formation two years ago. But its biggest charitable project seems to be Wendy Schmidt herself.

The foundation's two main programs are the 11th Hour Project, an organization which publishes links to information it deems "scientific" about global warming, and Greenhound LLC, a bus operator on Nantucket Island. Schmidt is the founder of the 11th Hour Project, and a longtime summer resident of Nantucket, where she is also an investor in downtown real estate.

Both superficially good causes. But if Eric wanted to give Wendy, who has a master's in journalism from Berkeley, a job writing environmental press releases, why didn't he just hire her at Google, as he did with ex-girlfriend Marcy Simon? And if the Schmidts want to boost the value of their Nantucket real estate with bus service, why don't they just pay for it themselves, rather than with the help of a tax-exempt charitable foundation?

Eric Schmidt complains about the lack of investigative journalism today. This seems like a good place to start. Compared to Bill and Melinda Gates, whose charity reaches around the globe, the Schmidts don't just come across as small-hearted. They look downright unimaginative.

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Tue, 05 Aug 2008 07:00:00 PDT Owen Thomas http://valleywag.com/index.php?op=postcommentfeed&postId=5032837&view=rss&microfeed=true
<![CDATA[ Eric Schmidt laments lack of Iraq war coverage, while hiring away journalists ]]> Google CEO Eric Schmidt stopped by Advertising Age's Madison and Vine conference last week, and proceeded to weep incredibly expensive tears over the fate of investigative journalism after Google helped eviscerate newspapers' business. "It's a tragedy for America," Schmidt declares before noting how few resources are going into reporting on the war in Iraq. "We'd spend a little more money to cover it, but our economic system doesn't justify that." Meanwhile, across the pond, Google hired away veteran BBC newsman Peter Barron of Newsnight for the company's public relations machine. Maybe Google will open a new PR bureau in Baghdad and send flacks to the front lines to cover the war. Would certainly be one way to improve Google News.

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Mon, 04 Aug 2008 15:40:00 PDT Jackson West http://valleywag.com/index.php?op=postcommentfeed&postId=5032843&view=rss&microfeed=true
<![CDATA[ Privacy advocates nearly publish guide to carjacking Google executive ]]> In a response to Google's recent assertion that "complete privacy does not exist," the National Legal and Policy Center released a step-by-step guide [PDF] to finding an unnamed "senior executive" from the company. While it doesn't reveal the home address, it does show a number of intersections where one might lie in wait to assault or kidnap said executive. Using Google Search, Maps and Street View, naturally.

The press release also quotes Google's Internet evangelist Vint Cerf declaring, "there isn't any privacy, get over it," though from the context of the cited article, it seems he was jokingly parroting former Sun Microsystems CEO Scot McNealy from 1999.Any commenters care to name the executive who lives in the walled compound pictured here? If you're worried Eric Schmidt will blackball you, feel free to send us a tip instead. Update: Of course, it's Larry Page's house (which Valleywag had earlier revealed). And the NLPC didn't do a great job of obfuscating the address — opening the PDF in Illustrator or Acrobat Pro makes it easy to remove the redactions.

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Thu, 31 Jul 2008 18:00:00 PDT Jackson West http://valleywag.com/index.php?op=postcommentfeed&postId=5031796&view=rss&microfeed=true
<![CDATA[ "We're smarter than ever" thanks to MTV, Google ]]> Career crank Nicholas Carr's cover story for The Atlantic asks, "Is Google making us stupid?" Oh come on, Google chief Eric Schmidt told an AdAge-sponsored conference in New York. They said that about color TV forty years ago. You can watch Schmidt here, or you can pull up your pants and read Carr's 4,000-word feature. But more likely you'd prefer my 100-word excerpt:

Over the past few years I’ve had an uncomfortable sense that someone, or something, has been tinkering with my brain, remapping the neural circuitry, reprogramming the memory. My mind isn’t going—so far as I can tell—but it’s changing. I’m not thinking the way I used to think. I can feel it most strongly when I’m reading. Immersing myself in a book or a lengthy article used to be easy. My mind would get caught up in the narrative or the turns of the argument, and I’d spend hours strolling through long stretches of prose. That’s rarely the case anymore. Now my concentration often starts to drift after two or three pages. The deep reading that used to come naturally has become a struggle.

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Wed, 30 Jul 2008 10:00:00 PDT Paul Boutin http://valleywag.com/index.php?op=postcommentfeed&postId=5031019&view=rss&microfeed=true
<![CDATA[ Google revenues up, profits down ]]> Google reported revenues of $5.4 billion for 2008's second quarter, which after payments to Web publishers which carry Google-sold ads, comes to $3.9 billion, just $30 million ahead of Wall Street's expectations. Second-quarter revenues grew 39 percent over the same period last year and increased 3 percent from the first quarter of 2008. Google earned $1.25 billion in profits in the quarter, down from $1.31 billion in the first. In statement, CEO Eric Schmidt said "Strong international growth as well as sustained traffic increases on Google's web properties propelled us to another strong quarter, despite a more challenging economic environment." Wait — we thought Google was immune to such paltry outside influences. Guess not: Google operating expenses in the second quarter of 2008 included $810 million in payroll-related and facilities expenses, compared to $809 million in the first quarter of 2008, which means the company's made sure to clamp down on expenses. Live coverage of Google's second quarter 2008 earnings call, below.

1:36 — The canned music is off and we're starting with the disclaimers. 11-word version: Our lawyers say you can't hold us to anything we say.

1:38 — Schmidt's taken the line now. He's already talking about how well Google's doing in "uncertain" times. Which shouldn't be very impressive, because didn't these guys used to say the economy would have no effect on Google? Yes, they did.

1:41 — Schmidt is going on about Google's impressive international growth.

1:41 — Now Schmidt's talking about Google CFO Patrick Pichette. He's also going on about how much he'll miss former CFO George Reyes. What, that idiot?

1:44 — European growth was strong largely on automotive advertising growth, Reyes tells us.

1:44 — Reyes warns that traffic acquisitions costs are probably going to go up.

1:45 — 448 new employees came on, mostly in engineering, sales and marketing. Oh yeah, and a whole bunch of DoubleClickers. (Though not as many as there could have been).

1:46 — Operating cash remains strong at $1.77 billion. If you're curious. (In which case, you'd be better off looking at Google's press release.)

1:48 — Now we're listening to Google's chief economist, Hal Varian. He says that Google queries are strong, even in places where you'd expect them to be down — such as auto and home sales. Year over year auto ad spending is actually up, for example.

1:49 — Consumers are being cautious in their online spending. Advertising remains strong, however.

1:50 — Brin picks up the phone.

1:50 — He's telling us that Google's search index is much bigger now. Over 100 search quality improvements went through this quarter. "Roughly one a day." For example, now you can get blog results on the bottom of the search page.

1:52 — Brin says: "Many of you may use iGoogle, and we know that because we've seen such tremendous growth."

1:53 — Brin goes on: "If you're listening to me right now, you probably speak English. But if you're using Google translator to read this, you might not. Google translate now covers over 20 languages." Can you imagine taking a meeting with this guy?

1:55 — Brin says this without irony: "Most of you have probably had the chance to watch some YouTube videos by now."

1:56 — Now he's talking about mobile search.

1:57 — "One of the things I'm most excited to tell you about today is our progress with Apps. There are now more than a half million business using Apps. And that's just a tremendous number." Did you know that the government of Washington, D.C. uses Google Apps? That's 38,000 employees! "It's been a very exciting quarter for that." Indeed sir.

1:58 — What I love about Bring are his seques. Like this one: "We don't view Google Apps as a closed environment, by the way. We want to see more companies deploying cloud solutions. One of the things we've done to help that is the Google Appe engine."

2:00 — Now Brin's talking about the very successful app: Buddy Poking. "For those of you that like to poke." Proudly hosted on Google's App engine and available through Open Social.

2:01 — We're moving on to questions and answers.

2:01 — JP Morgan asks: UK growth seems to have decelerated. Why? Also: Will mobile search expand volume? What's the revenue impact going to be?

2:02 — UK deceleration is just typical seasonality — you'll see more of this now that we own most of the market share over there.

2:03 — Sergey answers the mobile question: "I think you'll see an uptick in volume because you always want to know something, but you aren't always on your computer to find it out."

2:05 — You've been lowering amount of ads served to increase quality. Will this lowering stop anytime soon?

2:05 — I don't see the focus on quality changing. We would just show one ad — the perfect ad — if we could.

2:08 — Goldman Sachs: If queries are down in a sector, do advertisers respond by bidding up to reach a smaller set of consumers?

2:09 — Hal Varian's answer: Sometimes, yes. When there's a scarcity of searchers, the cost to reach them sometimes increases.

2:10 — Schmidt: Culturally, YouTube is a far greater success than we ever-expected. On the revenue side, I personally do not believe the best ad product has been invented yet.

2:11 — With YouTube we're access advertisers like Footlocker, LionsGate, Lenovo

2:13 — How much did DoubleClick contribute to the quarter? How is Google changing the buying process in display?

2:13 — Schmidt: We're not going to break out DoubleClick numbers. The strategy is to develop a broad product line — for the large and small advertisers and publishers. Google: We're piecing together a highly fragmented market (and in the process killing all premiums everywhere! Yay!)

2:18 — Question about headcount. Schmidt responds: What you'll see going forward is prudent management of headcount growth. We're paying a lot of attention. We never want to misuse some of these talented employees.

2:20 — Question about YouTube. Schmidt: We're having a great deal of success with overlays. We're also having success with gadget ads. "When we find the holy grail, it's likely to very large due to the size and scale of YouTube," Schmidt says. Which plays right into Mark Cuban's claim that "YouTube has become the poster child for the old saying "we are losing money on every sale, but we will make it up in volume."

2:20 — A fifth all searches utilize some element of Universal Search. Yeah. The questions are getting boring.
2:34 — I just spared you about 14 minutes of blah. Grateful? We're done here.

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Thu, 17 Jul 2008 13:40:00 PDT Nicholas Carlson http://valleywag.com/index.php?op=postcommentfeed&postId=5026443&view=rss&microfeed=true
<![CDATA[ Forecasting Google's second-quarter earnings ]]> Lately, there's been a downturn in the ad market. Even online advertising isn't growing as fast as it used to. But don't expect these macroeconomic trends to effect Google's second-quarter earnings report today. Google isn't a bellwether for the economy, CEO Eric Schmidt told reporters in Idaho last week. "We make our own weather," he said. With those remarks in mind, we'll let analysts like Citi's Mark Mahaney — who created the useful cheat sheet above — tell you what kind of numbers to expect today. Our forecast for today's earning's call instead? A downpour of arrogance and gutters full of gloating.

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Thu, 17 Jul 2008 11:20:00 PDT Nicholas Carlson http://valleywag.com/index.php?op=postcommentfeed&postId=5026335&view=rss&microfeed=true
<![CDATA[ Sergey Brin cares about the children ]]> Google CEO Eric Schmidt and cofounder Larry Page sat down with reporters for over an hour during an impromptu press conference while playing Bilderbergers at Allen & Co.'s exclusive Sun Valley getaway yesterday. There was talk of Google's Android cell-phone operating system; of China; of the search-ads deal with Yahoo. But it was fitness enthusiast Sergey Brin, rushing in late after a reported flat bicycle tire, who stole the show with feel-good blather:

"Another important factor that nobody talks about is teachers' salaries," Brin said. "Teachers are among the lowest-paid professionals. At Google, we've been paying our teachers 25 per cent more, but even with that, they're among the lowest-paid employees. I think it's really important to have a living wage for teachers."

Schools, of course, cost money. Google doesn't actually run a school, so Brin must be talking about the workers at his company's wildly overpriced childcare centers. On the Google model, even with teachers at the bottom rung on the payroll ladder, Brin's answer was to demand more money from parents.

Yet I haven't exactly seen Brin standing in solidarity with the teacher unions in California when they've lobbied for salary increases and smaller class sizes. Nor has Brin come out against Prop 13, the bill which froze property taxes in California, permanently hobbling education spending. But then it's been typical of Google to think they can have their gourmet, organic, locally-sourced cake and eat it, too.(Photo by AP/Douglas C. Pizac)

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Fri, 11 Jul 2008 17:00:00 PDT Jackson West http://valleywag.com/index.php?op=postcommentfeed&postId=5024393&view=rss&microfeed=true
<![CDATA[ Google's conflicted board ]]> CEO Eric Schmidt's Apple board seat is only the beginning of Google's high-level conflicts of interests. Once Google's directors get done recusing themselves, there might not be anyone left in the boardroom. [Portfolio]

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Tue, 08 Jul 2008 08:40:00 PDT Owen Thomas http://valleywag.com/index.php?op=postcommentfeed&postId=5022655&view=rss&microfeed=true
<![CDATA[ Yahoo refuses to pay News Corp. $15 billion for MySpace ]]> There's desperate — and then there's "paying $15 billion for second-place has-been social network MySpace" desperate. Not even Yahoo CEO Jerry Yang, under pressure from a mixed-up Microsoft, angry shareholders, and crazy-old-coot corporate raider Carl Icahn to do some kind of deal, is that desperate. Yang is taking so much heat for blowing merger negotiations with Microsoft, botching the company's reorg, and losing top talent that he's probably going to lose his job come August 1, when the company holds an annual shareholder meeting. But despite all that, a source close to the company told Reuters that Yang refused a bailout deal with News Corp. that would have combined Yahoo with MySpace because "News Corp. sought a value of as much as $15 billion for those assets." At long last, we're happy to credit Yang for a smart move!

Relative to social network rival Facebook, MySpace's popularity is fading, and its not hard to see why. The site is a design nightmare — not just in a fussy aesthetic sense, but in lacking a basic ability to go from page to page and perform functions — and it has a history of antagonism toward third-party widgetmakers who could improve its features. More importantly, MySpace has disappointed financially. Sure, News Corp. chairman Rupert Murdoch and company successfully pawned off its search-ads business to Google for $900 million in 2006, butGoogle CEO Eric Schmidt always jumps at the chance to tell reporters exactly how awful that deal has been for Google so far.

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Tue, 08 Jul 2008 08:20:00 PDT Nicholas Carlson http://valleywag.com/index.php?op=postcommentfeed&postId=5022890&view=rss&microfeed=true
<![CDATA[ Keeping Bezos, Ellison and Schmidt safe cost $3.4 million last year ]]> Keeping Oracle CEO and cofounder Larry Ellison safe cost the company $1.7 million over the fiscal year ending May 31, 2007. Most of that money went to guards at his homes as well as installing and repairing home security systems, according to Oracle's SEC filings. Part of Amazon.com founder and CEO Jeff Bezos's 2007 compensation included $1.2 milion for personal security. Google CEO Eric Schmidt spent $475,000 on security in 2007. A lot of the money probably goes to security precautions that might seem a lot more like luxuries than necessities.

Limited Brands CEO Leslie Wexner, for example, spent much of his $1.25 million 2007 security allowance toward "protecting" his corporate aircraft, yacht and 22,371-sq. ft. home. "Security has become a convenient excuse for getting shareholders to pick up the cost for the CEO's lifestyle,' corporate watchdog American Federation of State's director of corporate governance and pension investment told the Wall Street Journal. (Illustration by Richard Blakeley)

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Mon, 16 Jun 2008 09:40:00 PDT Nicholas Carlson http://valleywag.com/index.php?op=postcommentfeed&postId=5016764&view=rss&microfeed=true
<![CDATA[ Google's Eric Schmidt models CEO diplomacy ]]> With the cool confidence inspired by sitting more than a little above the fray in the whole Microsoft-Yahoo fracas, Eric Schmidt sat down on Tuesday for a taped interview with Fox Business's Liz Claman, resulting in fifteen minutes of the smooth talker on video. Schmidt has been working a press tour leading up to the cessation of talks between Microsoft and Yahoo. At the beginning of this clip, he praises Microsoft's leadership and then suggests that they could be "hostile" with their market power. By the end, he's downplaying any presumption of antitrust litigation arising in the event of any partnership between Google and Yahoo, citing how competitive the space is. It's almost convincing.

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Thu, 12 Jun 2008 15:00:00 PDT Jackson West http://valleywag.com/index.php?op=postcommentfeed&postId=5016021&view=rss&microfeed=true
<![CDATA[ She's, like, the Valley Girl and VC Tim Draper is totally her daddy ]]> Venture capitalist Tim Draper's daughter Jesse will soon launch a a new Web TV series called "Valley Girl." Watch the show's teaser, embedded here. It features awkward moments like Google CEO Eric Schmidt introducing himself as "I'm, like, Eric Schmidt" and angel investor Ron Conway doing the same. We're pleased as punch! Because with Julia Allison no longer driving traffic, we worried that the whole fameball phenomenon might be over. Turns out we just needed another pink-loving, camera-finding, ever-posing brunette with more ambition than sense to show us the way. Valleywag readers: Meet Jesse Draper. More videos and personal details, below.

Her favorite quotes:

Jesse: I feel bad for all the homeless people
Katharine: I know, they should all go to shelters
Jesse: But I think these are the homeless people who refuse to go to the shelters.
Katharine: Well then why don't we use them for genetic testing!

A longer trailer for her new show:

An interview about her show:

Her prior claim to fame, appearing on Nickelodeon's "The Naked Brothers Band" as Jesse Cook:

Jesse also does comedy. Sort of.

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Wed, 11 Jun 2008 15:20:00 PDT Nicholas Carlson http://valleywag.com/index.php?op=postcommentfeed&postId=5015602&view=rss&microfeed=true
<![CDATA[ Eric Schmidt denies existence of Google "evil meter" ]]> Google CEO Eric Schmidt shared his deep thoughts in a conversation with the New Yorker's Ken Auletta, and News.com's Dan Farber was there to transcribe the sermon. Shareholders might be a little surprised by statements like "Our goal is to change the world. Monetization is a technology to pay for it." But the real nut is how Google executives have been slowly backing away from the company's "Don't be evil" pledge.

"Don't be evil" is misunderstood. We don't have an evil meter ... the rule allows for conversation. I thought when I joined the company this was crap...it must be a joke. I was sitting in a room in first six months ...talking about some advertising...and someone said that it is evil. It stopped the product. It's a cultural rule, a way of forcing the conversation especially in areas that are ambiguous.

In 2006, Schmidt actually talked about an "evil scale". But now? Nothing even that hard and fast. See, it's not a rule like "no blade scooters in the hallways." It's more of a guideline. Or a punchline.

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Wed, 11 Jun 2008 13:20:00 PDT Jackson West http://valleywag.com/index.php?op=postcommentfeed&postId=5015528&view=rss&microfeed=true
<![CDATA[ Eric Schmidt doesn't care about Hispanic people ]]> What does a poorly received speech today by Eric Schmidt at the Economic Club of Washington have to do with Hispanic IT workers? Nothing, really, and that's what Lista, the Latinos in Information Sciences and Technology Association, wants you to know. One has to admire the sheer Valley-like opportunism of Lista's Jose Marquez, who sent us five questions Schmidt didn't answer about the threat a search deal between Google and Yahoo poses to the people his organization claims to represent. One question we have for Marquez: Does your close scrutiny of a potential Google-Yahoo deal have anything to do with Microsoft's many partnerships with your organization? Marquez's curiously loaded queries:

1. Given the growing reliance on online activism by civic organizations, how will Google ensure that it does not abuse the near 90% share of the search market it will most certainly control if it aligns with Yahoo!, which could allow the company to control how Americans access information on key issues?

2. Google has in the past been accused of using its search algorithms to favor certain search results over others. Such accusations are of particular concern to Hispanic-owned small businesses that rely on Internet search for a competitive equalizer in a marketplace dominated by large corporations. How will a company with 90% control of the search market allay fears that small businesses will lose this valuable economic resource?

3. Privacy advocates such as the Electronic Privacy Information Center and consumer groups like US PIRG have raised serious concerns about Google's privacy policies and practices - concerns that are doubled by the proposed deal that would give Google near-total control of the online search market. For Latinos considering subscribing to broadband services, worries about privacy - along with child safety and content filtering - are determining factors. How quickly will Google move to address these concerns?

4. During review of its acquisition of DoubleClick, Google pledged to alter several of its information-gathering techniques to address privacy concerns, including its use of "cookies" to track users' surfing habits. And yet the company has opposed an array of privacy regulations ranging from state laws in New York and elsewhere to adoption of FTC self-regulatory principles. Is Google now backing away from the pledges it made to usher along the approval of the DoubleClick deal, and will it take a similar tack when attempting to gain antitrust approval for the Yahoo! pact?

5. Cyberlaw scholars have noted that Google's disclosure of its privacy policy, which is not easily accessible from the company's home page, may be in violation of California state law. For Hispanic Internet users - the fastest-growing online population in the country - it is critical that privacy policies and other terms of use are readily disclosed, particularly to users who are new to the Internet. How will Google ensure that its disclosures comply with basic common-sense consumer protection principles?

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Mon, 09 Jun 2008 15:20:00 PDT Owen Thomas http://valleywag.com/index.php?op=postcommentfeed&postId=5014722&view=rss&microfeed=true
<![CDATA[ Google's suburban sprawl ]]> Google's announcement today of a massive campus expansion was inevitable. Having taken over every last scrap of office park around it not occupied by neighbor Intuit, Google is expanding the Mountain View Googleplex to the west — and, more controversially, to the east, on land owned but poorly used by Nasa. Ignore the happy talk about Google and Nasa's scientific partnerships; those are an obvious fig leaf to cover the use of public land by a private entity. (Let's not even get started on Larry Page, Sergey Brin, and Eric Schmidt's sweetheart deal to park their party plane on Nasa grounds.) Google has grown to be a powerful employer in the Bay Area, and its wealthy executives donate freely to local politicians, so we should hardly expect the powers that be to stop it. What's good for Google is good for America, or so we'll be told.

What ought to stop this search-engine sprawl: Googlers' own consciences, if they are still guided by the "Don't be evil" slogan. Developing new offices on the very fringe of Bay Area's suburbs, on areas that used to be wetlands, or neighbor the fragile ecosystems, is unconscionable. Despite the perk of free shuttle buses, most Googlers still drive carbon-emitting cars to work.

The Bay Area's infrastructure allowed Google to blossom. The region has asked far too little of it in return. Google should commit now to funding the extension of Santa Clara County's light-rail system through its new campus and its old one. It should also expand in cities like San Francisco, already served by public transit, rather than shuttle its workers 40 miles each way. Eliminating energy expended in transportation is far more productive than finding clever ways to achieve marginal efficiencies.

The environmental impact is one thing. But the business impact is another. Google's executives should also ask themselves: What kind of company do they want to be? Do they want to remain cloistered from the world, or engaged in it? Facebook CEO Mark Zuckerberg chose to place his company in downtown Palo Alto, with all the difficulties that poses; his choice meant that his workers rub shoulders daily with Stanford students, entrepreneurs, venture capitalists — and, shockingly, people not involved in the tech industry. On the Googleplex, Googlers live in a world of sameness, with people who never challenge their technology-über-alles worldview.

Larry and Sergey have built themselves a candy-colored bubble on the outskirts of Mountain View. By inflating it, as they've chosen to do, they only increase the risk that a competitor more in touch with the real world will pop it.

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Wed, 04 Jun 2008 17:00:00 PDT Owen Thomas http://valleywag.com/index.php?op=postcommentfeed&postId=5013235&view=rss&microfeed=true
<![CDATA[ Why Google can't sell enough MySpace ads ]]> Google CEO Eric Schmidt said it has been "harder than we thought" for Google to make money selling ads for News Corp.-owned social network MySpace. Perhaps we've discovered one small reason why. As this screenshot from Search Engine Journal demonstrates, Google searches for the terms "MySpace Advertising" turn up Google ads for Facebook advertising instead.

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Mon, 02 Jun 2008 10:00:00 PDT Nicholas Carlson http://valleywag.com/index.php?op=postcommentfeed&postId=5012263&view=rss&microfeed=true
<![CDATA[ Google to acquire invisible hand of markets ]]> Business strategist Gary Hamel interviews surprisingly effusive Google CEO Eric Schmidt. Can you suggest a better caption? Do so in the comments. The best one will become the new headline. Yesterday's winner: TemplaHeron, for "Google I/O afterparty, May 29, 1977." (Photo by Steve Jurvetson)

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Fri, 30 May 2008 16:00:00 PDT Jackson West http://valleywag.com/index.php?op=postcommentfeed&postId=394356&view=rss&microfeed=true
<![CDATA[ Millionaire Mark Zuckerberg needs to hire a decorator ]]> Mark ZuckerbergHow did we miss this at D6? Mark Zuckerberg said he'd had Google cofounder Larry Page and CEO Eric Schmidt over for dinner recently; his digs were so Spartan, Zuckerberg said, that Page got a chair, and Schmidt wound up on the floor. Zuckerberg likes to point to his one-bedroom apartment as proof that he hasn't profited from Facebook. But according to Sarah Lacy in Once You're Lucky, Twice You're Good, Zuckerberg cashed out $1 million in Facebook shares in an early financing round. He can afford some nice furniture, in other words; he's just too busy, or lazy, to hire an interior decorator.

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Fri, 30 May 2008 15:40:00 PDT Owen Thomas http://valleywag.com/index.php?op=postcommentfeed&postId=394324&view=rss&microfeed=true
<![CDATA[ When flacks attack! Marcy Simon vs. Elliot Schrage ]]> CARLSBAD, CA — I'll be unabashed about it: Part of the fun of a conference like D6 are the casual mogul sightings. Look! Barry Diller in a schlumpy brown sweater! Say, isn't that Jeff Bezos chatting up a Googler? But my favorite happenstances are the reunions of frenemies. Take, for example, this chance encounter between Marcy Simon, the former girlfriend of Google CEO Eric Schmidt, and Elliot Schrage, the head of Facebook PR. (Sandwiched awkwardly in the middle is Google VP Susan Wojcicki.) Simon and Schrage's back story, and more pictures from the hotel lobby at D6, after the jump.

Schrage, we hear, strongly opposed Simon's hiring as a consultant for the launch of the then-secret Googlephone — the collection of wireless software now known as Android. And Schmidt's extramarital relationships, first with Simon and later with Kate Bohner, were a source of friction between him and Schrage, not because Schrage disapproved, but because it hurt the company's image. Or so I've heard. I've run into Schrage twice at the conference, and he's made noises about talking to me, at which point I'll ask him directly about all this.

That's not the only run-in Schrage and Simon have had, though. Before taking her current gig at Thomson Reuters — one that Thomson Reuters PR staff are not very happy about — Simon made a strong play to take over PR at Facebook. She was not very gently rebuffed, and Schrage landed the job instead.

And yet here we see Schrage, smiling, or faking a smile, as he catches up on email as Simon and Wojcicki catch up. His new bosses at Facebook should be pleased they've hired someone so skilled at putting on appearances.

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Wed, 28 May 2008 13:20:00 PDT Owen Thomas http://valleywag.com/index.php?op=postcommentfeed&postId=393779&view=rss&microfeed=true
<![CDATA[ IAC's Citysearch faces class-action lawsuit over click fraud ]]> Los Angeles-based law firm Kabateck Brown Kellner filed a class action suit against IAC property Citysearch, alleging the site charges pay-per-click advertisers for fraudulent clicks. The firm has won similar cases against Yahoo and Google. All the major search firms now belong to anti-click fraud coalitions and make lots of nice noises about the problem. Truth is, click fraud isn't much of one. As Google CEO Eric Schmidt explained during an unguarded moment a couple years ago, click fraud will never be that much of a problem because if fraudulent clicks devalue the worth of click for an advertiser, that advertiser can always pay less per click.

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Wed, 28 May 2008 10:00:00 PDT Nicholas Carlson http://valleywag.com/index.php?op=postcommentfeed&postId=393680&view=rss&microfeed=true
<![CDATA[ Eric Schmidt admits MySpace remains junk ]]> Schmidt_Thumb.jpgBack in August 2006, when Google agreed to pay News Corp. $900 million to serve ads against MySpace, News Corp. COO Peter Chernin bragged, "Whoever said it remains to be seen whether we can monetize [MySpace], hopefully it's a little clearer this week." Almost two years later, "monetizing" MySpace seems more difficult than ever. At least, according to Google CEO Eric Schmidt. "MySpace did not monetize as well as we thought," Schmidt told a German reporter.
We have a lot of traffic, a lot of page views, but it is harder than we thought to get our ad network to work with social networks. When you are in social network, it is not likely that you'll buy a washing machine. It is not a long term problem but it is taking us longer than we thought.

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Wed, 28 May 2008 08:40:00 PDT Nicholas Carlson http://valleywag.com/index.php?op=postcommentfeed&postId=393656&view=rss&microfeed=true
<![CDATA[ Invading D6, the Wall Street Journal's posh pooh-bah conference ]]> CARLSBAD, CA — D, the Wall Street Journal schmoozefest which opened today with a round of golf at the Four Seasons Aviara Resort, is not the conference for the rest of us. It attracts a host of tech and media CEOs who agree to be harangued onstage by Walt Mossberg, the sexagenarian of sexy gadgets, and Kara Swisher, the diminutive media commentaterrorist of AllThingsD.com. In exchange, they get to seem classy and witty, if only by comparison. It is the sort of elite event to which Valleywag is not invited. We showed up anyway.

Security may prevent me from attending the formal program. But the hotel bar is lovely, I hear, and I intend to camp out there, to overhear what I may and hold court with brave (or incautious) tipsters. Folks I'm looking forward to running into:

  • Facebook COO Sheryl Sandberg, who threatened to shoot me
  • Thomson Reuters CEO Tom Glocer, or rather, his rumored chaperone at the event — Marcy Simon, Google CEO Eric Schmidt's ex-girlfriend
  • Yahoo president Sue Decker, who is negotiating a divorce at the same time as a merger

And that's just for starters. See why I don't get invited to these things?

For you, gentle reader, I can endure a few awkward conversations and more. Peruse the list of speakers, think of questions you'd like me to ask, and I'll do my best to buttonhole them for you.

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Tue, 27 May 2008 12:40:00 PDT Owen Thomas http://valleywag.com/index.php?op=postcommentfeed&postId=393479&view=rss&microfeed=true
<![CDATA[ Now it's time on Sprockets when we dance ]]> Proud Google CEO and father figure Eric Schmidt looks on as Sergey Brin and Larry Page announce their undying love for each other in the wake of the California Supreme Court decision legalizing gay marriage. We kid! Or fantasize, what have you. But we couldn't resist when our tipster pointed out how the young founders' outfits matched a little too well while speaking at a Google Zeitgeist event. Can you suggest a better caption? Do so in the comments, and the winning one will become the new headline on this post. Friday's winner: Torley, for "Our hero travels back in time to star in Breakfast Club 2." (Photo by Joi Ito)

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Mon, 19 May 2008 16:00:00 PDT Jackson West http://valleywag.com/index.php?op=postcommentfeed&postId=391854&view=rss&microfeed=true
<![CDATA[ Much-hyped new ad product means YouTube has to actually make money ]]> YouTube announced a new ad product called Buzz Targeting. It uses an algorithm to allow advertisers to target "about-to-go-viral videos," and it's the ad product Google CEO Eric Schmidt gushed about during an interview with CNBC last month when he said: "We believe the best [YouTube] products are coming out this year. And they're new products — much more participative, much more creative, much more interesting in and of themselves." One problem:

advertisers can't use Buzz Targeting to serve ads against popular videos uploaded by regular YouTube users, only those uploaded by "content partners" — probably because regular users often don't own the copyright to the videos they upload and it's hard for Google's lawyers to justify YouTube making money off those.

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Wed, 14 May 2008 10:00:00 PDT Nicholas Carlson http://valleywag.com/index.php?op=postcommentfeed&postId=390299&view=rss&microfeed=true
<![CDATA[ Robot CEO smuggles human wife into movie premiere ]]> We'd grown so accustomed to seeing Google CEO Eric Schmidt squiring girlfriends to events that we couldn't believe our eyes. Was that attractive blonde on his arm actually his wife, Wendy? The couple eschewed the red carpet when entering the Castro Theater for last night's Vanity Fair-sponsored screening of Gonzo: The Life and Work of Dr. Hunter S. Thompson for the San Francisco International Film Festival, but our paparazzo still managed to snap a shot of the publicity-averse Mrs. Schmidt. (Some insiders suggest that Wendy, a graduate of UC Berkeley's journalism school, was behind Eric's temporary boycott of News.com after the website published their home address.) Can you suggest a better caption? Do so in the comments. Yesterday's winner: "Handvertising is the new banner ad," by loganvision. (Photo by Steve Rhodes)

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Fri, 09 May 2008 16:00:00 PDT Jackson West http://valleywag.com/index.php?op=postcommentfeed&postId=388833&view=rss&microfeed=true
<![CDATA[ Scandal-ridden Brit Rachel Whetstone to run Google PR ]]> Rachel WhetstoneWe hear that Rachel Whetstone, Google's European communications director, will replace Elliot Schrage as the company's top flack after Schrage left for Facebook. Her background may make her a perfect fit, in more ways than Google would like you to know. Unlike Schrage, Whetstone has some experience with rough-and-tumble politics, having served as chief of staff to British Conservative party leader Michael Howard. She also may be better suited to dealing with CEO Eric Schmidt's periodic outings with mistresses: She herself had an affair with Viscount Astor, a top Tory official, which scuppered her political career and led to her joining Google.

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Fri, 09 May 2008 12:00:00 PDT Owen Thomas http://valleywag.com/index.php?op=postcommentfeed&postId=389096&view=rss&microfeed=true
<![CDATA[ Google moves to quash Wall Street's hopes for Microsoft-Yahoo deal -- and with it, Yahoo's stock price ]]> Yahoo_Cubicles.jpgYahoo shares are hovering around $25 because investors hope major Yahoo shareholders can still force a deal with Microsoft at $33 per share or more. But at Google's annual shareholder meeting yesterday, cofounder Sergey Brin and CEO Eric Schmidt tried their best to destroy those hopes, amping up talk of a deal that would outsource Yahoo's search advertising to Google and make Yahoo unattractive to Microsoft. Brin said the deal is designed to keep Microsoft at bay. "[Yahoo was] under a hostile attack and we wanted to make sure they had as many options as possible," Brin said.

But Google only wants to give Yahoo so many options as long as there's even a remote possibility Microsoft will try to acquire the company. As soon as that threat's gone, expect word of "divided" Google executives worried about antitrust regulations to return — leaving Yahoo shareholders without a Google deal or a Microsoft deal. Just Yahoo CEO Jerry Yang's infinite wisdom.

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Fri, 09 May 2008 10:20:00 PDT Nicholas Carlson http://valleywag.com/index.php?op=postcommentfeed&postId=388990&view=rss&microfeed=true
<![CDATA[ Eric Schmidt's conflicted position on Apple's board ]]> google_eric_schmidt.jpgAlready "walled off" from any discussion of Apple's iPhone, Google CEO Eric Schmidt could see his role on Apple's board of directors further diminish. Google's interest in wireless hardware powered by Android software and its investment in Clearwire's WiMax network pose apparent conflicts with Apple's interest in 3G iPhones. [BusinessWeek] (Photo AP/Michel Euler)

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Wed, 07 May 2008 11:40:00 PDT Jackson West http://valleywag.com/index.php?op=postcommentfeed&postId=388116&view=rss&microfeed=true
<![CDATA[ Elliot Schrage, Google's top flack, interviewing at Facebook ]]> Elliot SchrageAre Elliot Schrage and Sheryl Sandberg about to stage a policy-wonk reunion in Palo Alto? When she worked at Google, Sandberg, now Facebook's COO, helped recruit Schrage from the Council on Foreign Relations. Having taken charge of Facebook PR, Sandberg is looking to hire a VP of communications with experience in public policy. Since most Valley flacks are weak in knowing the ways of D.C., that job description is tailor-made for Schrage. Sources tell us he has already interviewed at Facebook. And we hear he's more than ready to leave Google, chiefly because of its philanderrific CEO, Eric Schmidt.

It's not the fact that the married Schmidt sleeps around that bothers Schrage (and most of his underlings in Google PR); it's how Schmidt mixes business and pleasure. His recent mistress, Marcy Simon, was temporarily installed in Google's New York office to head up PR for Google's still-nonexistent Googlephone. Simon's replacement, TV journalist Kate Bohner, has squired Schmidt, very publicly, to at least one political debate cosponsored by Google's YouTube and CNN. If Schrage wanted to deal with bimbo eruptions, he could have stayed in politics.

It's not clear Schrage is the best choice for the Facebook job, objectively speaking. One person who's worked with him says he's a disaster as a manager, and not particularly strong in the PR part of his duties, preferring the more high-falutin' policy work.

But that could make him the perfect yes-man to Facebook CEO Mark Zuckerberg's plans for world amelioration. At the South by Southwest conference, Zuckerberg talked, tongue not at all in cheek, about how Facebook could bring peace to the Middle East by preventing Arab teenages from turning into terrorists. He seems to believe sincerely in this stuff. And if it gets him a job at Facebook, Schrage is just slick enough to put on the illustion that he does, too.

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Mon, 05 May 2008 10:40:00 PDT Owen Thomas http://valleywag.com/index.php?op=postcommentfeed&postId=387224&view=rss&microfeed=true
<![CDATA[ Google needs to stop being nice and start charging advertisers for distribution ]]> In comments to CNBC's Maria "Money Honey" Bartiromo yesterday, Google CEO Eric Schmidt declared that "advertising itself has value" in YouTube's efforts to achieve profitability. By which he likely means that a well-placed ad can, on occasion, actually help a potential customer find what they're looking for. But you know what else has value? Distribution. Never mind sophisticated ad-targeting technology — YouTube is subsidizing distribution of commercials, and if the company wants to profit, Schmidt might want to think about charging for it instead.

As it stands, a producer can contract with a liquor distributor to produce a commercial at a profit, and then distribute the commercial on YouTube without paying a dime — even reaching underage audiences. Or he can get paid to place brands in the hands of sketch-comedy players. Again, he makes the money, not YouTube. I'm not sure that "innovation" is required so much as doing what television has been doing for generations, which is charging advertisers to distribute their commercial content.

YouTube's incredible rate of user adoption and massive market share has been largely due to the fact that it's reached a critical mass of content, which is better than any advertising the site could have bought. There is no video search anymore, really, just YouTube. What the company needs to do now isn't brainstorm new and interesting ways to sell ads against free content, but leverage what other distribution platforms are already doing — including Google search.

Because even if the site doesn't want to charge Smirnoff to distribute the company's commercials, YouTube could at least charge to have Smirnoff ads appear on searches for specific keywords. And if the online video site policed for copyrighted material, not only would it help make nice with content providers, it would also mean YouTube could then charge them for the distribution of show clips as well — which, ultimately, serve as advertisements for the shows, both on television and online.

As NewTeeVee's Liz Gannes pointed out, "It's all smoke and mirrors until the products launch." I have a bad feeling that YouTube is thinking that "plinking" — embedding product links within videos — and other failed interactive ad schemes of the past will save them. If Google simply put the screws to the people who can pay to play their content, in the time-honored tradition of entertainment distribution racketeers throughout history, the site would have been profitable a long time ago.

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Thu, 01 May 2008 12:00:00 PDT Jackson West http://valleywag.com/index.php?op=postcommentfeed&postId=386155&view=rss&microfeed=true
<![CDATA[ Schmidt gives engineers six months to complete Google-DoubleClick integration ]]> Engineers hate it when suits put them on public deadlines, because they then can't spend months twiddling code to perfection. That's exactly what Google CEO Eric Schmidt did yesterday when he told CNBC's Maria Bartiromo that the integration of DoubleClick's ad-serving platform into Google's AdWords would take six months. Better get cracking, boys.

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Thu, 01 May 2008 09:20:00 PDT Nicholas Carlson http://valleywag.com/index.php?op=postcommentfeed&postId=386148&view=rss&microfeed=true
<![CDATA[ Schmidt: Microsoft-Yahoo would "elminate consumer choice" ]]> In this excerpt from Eric Schmidt's interview with CNBC's Maria Bartiromo, the Google CEO explains that a Microsoft-Yahoo merger would "eliminate consumer choice, particularly in electronic mail, instant messaging — things where they would have 80 or 90 percent market share." As an alternative, Google has proposed the idea of serving its ads against Yahoo's search, giving it control over 80 percent of the search advertising market. But that would eliminate advertisers' choice, not consumers'. So it's cool.

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Wed, 30 Apr 2008 14:00:00 PDT Nicholas Carlson http://valleywag.com/index.php?op=postcommentfeed&postId=385860&view=rss&microfeed=true
<![CDATA[ Google and Yahoo being investigated by Justice Department for antitrust violations ]]> Googles Eric Schmidt calls Yahoos Jerry Yang on the BatphoneThe Justice Department has begun an antitrust investigation into Yahoo's test of Google's search advertising technology according to an anonymous source cited by Reuters:
The source, who spoke on condition of anonymity, said that some of the government's concern focused on a telephone call from Google Chief Executive Eric Schmidt to Yahoo Chief Executive Jerry Yang to offer help in thwarting Microsoft's $44.6 billion bid.
Microsoft has to be giggling like The Joker if Schmidt's attempt at swooping in like Batman leads to a date with Gotham City D.A. Harvey Dent.

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Wed, 23 Apr 2008 14:40:00 PDT Jackson West http://valleywag.com/index.php?op=postcommentfeed&postId=383335&view=rss&microfeed=true
<![CDATA[ Google CEO backpedals on privacy promises ]]> EricSchmidt.jpgLast year, Google placated privacy-minded opponents of its DoubleClick acquisition with promises to create a new kind of Web browser "cookie," a file which keeps personally identifiable information about a website's users. Now that Google has swallowed DoubleClick, the online advertising company seems to have lost its interest in developing these so-called "crumbled cookies," the Financial Times reports. Google CEO Eric Schmidt that's because cookies are too complex for Google to deal with. "What we've discovered about cookies is that every question leads to a one-hour conversation," Schmidt said. Please, folks, be a little more understanding: It's not that Google doesn't want to answer difficult questions about privacy. They're just too busy.

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Mon, 21 Apr 2008 15:00:00 PDT Nicholas Carlson http://valleywag.com/index.php?op=postcommentfeed&postId=382228&view=rss&microfeed=true