Even before Google CEO Eric Schmidt officially endorsed Barack Obama, he was cozying up to the Democratic candidate. Take this interview in May, for example. What was Schmidt really thinking when this photograph was taken? Suggest a caption in the comments. The best one will become the post's new headline. Yesterday's winner: its_a_feature, for "Zack and Mari make a porno."
The FCC is having its own vote today, on whether or not to allow future wireless gadgets to operate in parts of the radio spectrum already in use by wireless microphones. Google is all for the new spectrum-sharing policy. Professional musicians and their audio engineers are dead set against it.In theory, smartphones will detect when a wireless mic is in use in the area, and not interfere with it. In practice, who are they kidding? New York City's Broadway League is campaigning to keep that part of the radio spectrum free for roughly 450 wireless microphones used in Manhattan's theater district. Out here, I'll be furious if Journey's next show at Shoreline is ruined when 853 Google employees check their mail during "Wheel in the Sky." (Photo by Getty Images/Justin Sullivan)
When did Eric Schmidt turn into such a wimp? When Google and Yahoo first proposed a deal to have Google sell search ads for Yahoo, Schmidt brazenly gave antitrust regulators a four-month deadline to review it. After that, Google would blaze ahead with the deal. The deadline came and went. Over the weekend, Google and Yahoo turned in a revised deal that they hoped would impress regulators. The bottom line: It is half as lucrative as Yahoo had hoped, generating $400 million a year rather than $800 million, limiting Google-sold ads to a quarter of Yahoo's search-related revenue. It's better than nothing, but it leaves Schmidt in a weak position the next time he wants to talk tough with the feds. Then again, maybe he's planning to dump Larry and Sergey for a nice, safe government job.
♦ Horror of horrors: The average Goldman partner may take home a bonus of $1 million or less this year. [FT]
♦ One of Goldman's flagship hedge funds, Goldman Sachs Investment Partners, has lost close to $1 billion since January. [FT]
♦ UBS posted a third-quarter profit, but it still laid off 700 U.S.-based employees last week. [CNNMoney, NYP]
Odyssey Moon is an international partnership of guys with space cred on their resumes. They've hacked Google's $30 million Lunar X Prize contest brilliantly: Instead of hiring private contractors to build a lunar rover better and faster than Nasa's risk-averse bureaucracy, Odyssey Moon has hired Nasa to do the job as a contractor. Everybody wins! That is, as long as you think Odyssey Moon's vision of the Moon as an eighth continent paved with solar farms is a win.
As the election approaches, more bloggers are noticing ads from backers of Proposition 8, the gay-marriage ban appearing on Californians' ballots, courtesy of Google. The search engine's algorithm is mindlessly matching them to phrases like "gay marriage," regardless of whether the blog in question is for or against. Scott Beale, who blogs about Internet culture at Laughing Squid, has blocked the yes-on-8 ads, and, for good measure, taken Google's ads off his site altogether until after the election. He's not alone; one fashion website adminitrator tells Valleywag she's taken similar measures.I haven't heard of any cases of the opposite happening, but I wouldn't be shocked if some socially conservative bloggers were similarly offended by no-on-8 ads placed on their blog by Google. Which returns me to my original question about these ads: If Google's algorithms are so good at placing ads, why aren't they able to gather whether a blog's audience generally supports or opposes gay marriage, and target ads where they'll do the most good? (Screenshot by Scott Beale/Laughing Squid)
In exchange for his late-to-the-party endorsement of Barack Obama, Google CEO Eric Schmidt got a spot on Obama's prime-time infomercial last night. Note how Schmidt explains his decision, made only after Obama took a substantial lead in the polls: "When I read his economic plan and saw the people endorsing it, Warren Buffett, I thought, 'This is the right plan for America.'" In other words, Schmidt didn't endorse Obama until he saw it was popular with the right people, and might help Google get its search deal with Yahoo passed under an Obama administration. Brave! We still don't think you'll get that government job, Eric.
The lovingly jumbled piles of books at Shakespeare & Co., the famous Paris bookstore, must madden Googlers. All that information, unorganized! In the wake of its $125 million settlement of a lawsuit filed by book publishers, Google is now thinking about turning its money-burning Book Search product into an online store. This will end badly.Remember the Google Video Marketplace? Exactly. Launched months before Google bought YouTube, the video store required cumbersome copyright protections and was a nonstarter with consumers. Google closed the store last year, enraging the dozen or so people who'd actually bothered to buy videos. And Google's Book Search operations are a disaster, overseen by Ramsey Allington, an unqualified IPO lottery winner who joined Google at the right time to get valuable stock options and social connections. He has made a mess of his department, driving out qualified female employees by being a sexist boor. Publishers would do well to steer clear of Google until he's gone. Even if Google Book Search is placed under competent management, I doubt it will succeed. Google lacks a merchant's sensibility, trusting algorithms over salesmanship. But most people do not walk into a bookstore knowing what they are looking for. They seek serendipity — a quality that Googlers, with their overplanned vision of the world, hope to eliminate. There is beauty in an untidy stack of books. But a Stanford MBA's spreadsheets will never capture that. (Photo via Paris Parfait)
Esther Wojcicki, known as "Woj" at Palo Alto High School, where she teaches journalism, is a beloved figure on campus. She's also quite welcome at the Googleplex, as the mother of Anne Wojcicki, who's married to Google cofounder Sergey Brin, and Google executive Susan Wojcicki. I wonder if proximity to power and wealth has dulled Woj's reportorial instincts.She recently wrote a wide-eyed travelogue for the Huffington Post about the first flight of the Zeppelin NT, a blimp launched by startup Airship Ventures. Airship is backed by Esther Dyson, who is also an investor in her daughter Anne's startup, 23andMe. That, at the least, Woj ought to have disclosed. (I've asked Mario Ruiz, an executive at Huffington Post, if she violated any of the online publication's disclosure rules for writers; he has yet to reply. But if she really wanted to impress her students with her journalism chops, Woj might have asked questions about Amphitheatre LLC, the shadowy entity which has also invested in Airship Ventures. Amphitheatre shares a name with the street address of Google's headquarters — and possibly more. I would love to have known what Woj would have discovered, had she been less interested in promoting her daughter's investor's new startup.
In tough times, overcommunicate, says Kleiner Perkins partner John Doerr, doing an inadvertent impression of so-sharey-he's-scary videoblogger Robert Scoble. One Kleiner portfolio company has gotten the message: Google! Kim Scott, the company's director of online sales and operations for AdSense, the company's system for placing ads on other websites, has sent a mass email to Web publishers who use the product. The letter refers to "recent economic turmoil" and reassures publishers that the company is "continuing to invest in innovations" — as opposed to, say, milking publishers for everything they're worth. The question Scott's letter really raises: Who's Google afraid of?Surely not Yahoo. Microsoft and AOL don't even play in the AdSense market; of Google's rivals, most have large pageview minimums which smaller publishers won't meet. Perhaps Scott is worried that small Web publishers will simply throw in the towel? Her memo:
Search engine marketing guru Danny Sullivan says small-time businesses are stealing other's listings in Google Maps. "Florists, locksmiths, payday loan companies and others have found their listings hijacked in this manner." It's a hack so obvious I'm surprised no one at Google thought of it: You can edit the listing for your competitors to include your business name, URL and phone instead of theirs. Wikipedia meets the Yellow Pages! Vint Cerf totally saw this coming. Too bad no one listens to him.
♦ October will go down as one of the gloomiest months in history. [CNN]
♦ Barclays plans to raise $11.8 billion by selling shares to Abu Dhabi and Qatar in order to meet Britain's new capital requirements. [NYT, WSJ]
♦ The banks benefiting from the bailout also owe $40 billion in compensation to employees, just in case you were wondering where your tax dollars were going. [WSJ]
♦ Meanwhile, banking CEOs may be in talks to cap compensation. Or they may just be paying the idea lip service in this sensitive political climate. [WSJ]
Alex Payne, who manages Twitter's API, posted a thumbsucking essay on Tuesday titled The Internet's on Shaky Ground. Payne seems to have reverse-engineered blowhard New York Times columnist Tom Friedman's formula for a big-picture think piece: Take a self-contradictory slogan like "Worse Is Better." Lay out your case: The glorious past, the beautiful future, the crummy now. Don't advocate a specific solution, though. Say that a question remains. Ask that question. (Payne: "The question remains: What will it take to push us forward?") Then kick back and wait for Vint Cerf to show up and supply the actual details from memory. Did someone say the Internet was built on shaky ground? Cerf rolls his eyes in exasperation, but only two or three times max:
A giant datacenter on 800 acres of land in Pryor, Oklahoma, won't start operating until 2010, Google spokesbots now say. The $600 million datacenter was supposed to open early next year, employing 100 people. Local and state officials had bent over backwards to attract Google to the site, even passing a law which made Google's energy bills private, lest competitors determine how efficiently it was running. (Photo by David Jones/GTR Newspapers)
"When my wife switches, then you'll know," says Motorola co-CEO Sanjay Jha, whose spouse carries an LG Voyager and refuses to trade it for a Moto. Mrs. Steve Jobs? She carries an iPhone. The company is cutting back from six operating systems to three: Windows Mobile, Moto's own P2K, and Google's open-source Android. Oh, and they're going to lay off a few thousand more people, too. Tough times, tough decisions!
Ramsey Allington, the bad-boy manager of Google's book-search operations who stands accused of sexism and discrimination by his employees, has turned electronically shy after Valleywag's exposé of his misdeeds. His blog, Ramsey's World, is now friends-only — which just suggests he's got more to hide.For example, a now-yanked video of him singing a karaoke version of Britney Spears's "Baby One More Time." (Allington is wearing glasses, at right.) The occasion appears to be a party for coworkers in Hyderabad, India, where Allington helped open up a customer-support office for Google. How charming: This fellow has gone from sharing the worst of American culture in India, to showing the worst of Google's toxic insideriness at home.
Yahoo's deal to outsource some of its search advertising to Google continues to face scrutiny on Capitol Hill. Google CEO Eric Schmidt had said he'd carry out the deal whether or not regulators had finished their review. Regulators called his bluff, and America's CTO has now lost face, not to mention credibility. Why not just bow out and move on? That seems easier.
Let's face it: Google's every attempt to venture outside its holy circle of search and ads has been a financial nonstarter. So is it thinking about getting into the energy business? Yes. Read between the lines in CEO Eric Schmidt's statements to the New York Times. "Our primary mission is one of information," he says. "As to whether we will be in these other businesses, we will see.” See? When a project is some years off, America's CTO out-and-out lies. Remember how he denied, for years, that Google was working on a Web browser, and then presto ta-da, Google Chrome emerged fully formed from the forehead of Sergey Brin? Right. So if Schmidt is merely ditherating about the idea that Google could play in the energy business, you might as well be getting utility bills in your Gmail tomorrow.
