In something of a “no-duh” moment, Google CEO Eric Schmidt told Fortune that Google wouldn’t be buying any newspapers to save them from financial ruin.
How about just buying them?
The good news is we could purchase them. We have the cash. But I don’t think our purchasing a newspaper would solve the business problems. It would help solidify the ownership structure, but it doesn’t solve the underlying problem in the business. Until we can answer that question we’re in this uncomfortable conversation.
I think the solution is tighter integration. In other words, we can do this without making an acquisition. The term I’ve been using is ‘merge without merging.’ The Web allows you to do that, where you can get the Web systems of both organizations fairly well integrated, and you don’t have to do it on exclusive basis.
This question, about Google buying a newspaper publisher or directory company, comes around every few months. Google won’t do it — despite Schmidt’s personal affinity for newspapers — because it makes no sense financially, technologically or culturally. The story’s “deck” or lead-in paragraph accuses Google of contributing to the decline of newspapers:
Metaphorically speaking, Google is killing the newspaper industry. Online news is quickly hollowing out the traditional paper – the Christian Science Monitor eliminates its print edition, Tribune Co. declares bankruptcy, Detroit’s two dailies slash home delivery to three days a week – while Google rakes in advertising profits.
Turns out that Google CEO Eric Schmidt professes a passionate desire to lend a hand.
I’m not sure what “metaphorically speaking . . .” means in this particular context. Google isn’t killing the newspapers. Google is merely the “personification” of the Internet era. The newspapers have failed to recognize what’s happening, overcome their own bureaucracy and ACT in sufficient time. Hopefully, they will survive this recession . . . hopefully.
