Google chief ends newspaper purchase speculation

by Rich Bowden - May 22 2009, 07:19

Google chairman and chief executive Eric Schmidt has said his company has decided against the purchase of a newspaper, thereby quashing rumours the the Internet giant was looking to move into controlling cash-strapped media outlets such as The New York Times.

Speaking to the Financial Times in an interview, Schmidt admitted the idea of such a purchase had been considered but that his company was "trying to avoid crossing the line" between technology and content, instead working on ways to improve publishers' Web sites.

He also added that the expense of buying targeted newspapers was either too high or carried with it too many liabilities.

Schmidt rejected the idea of Google's non-profit arm buying or providing a financial shelter for beleaguered news outlets, saying this was a "clever idea" but would not happen "without some massive, massive set of corporate bankruptcies."

Although there has been recent speculation over Google's possible interest in The New York Times and the Washington Post, Schmidt said such interest was merely a collaboration to help the publishers make their Web sites more user friendly.

The relationship between Google and news corporations has become strained in recent times, with some in the news-gathering industry referring to Google as a "parasite" for allegedly appropriating news published in newspapers and media outlets.

 

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