Google Says It Is Back To Buying
Now that the global economy appears to be on an upswing, Internet giant Google is prepared to resume its buying of companies, according to AFP.
"Acquisitions are back on," chairman and chief executive Eric Schmidt told reporters on Wednesday following a pep talk of sorts to students and business leaders in Pittsburgh the night before the G20 summit of the world’s largest economies.
While no details were provided on what major companies Google has its eye on, during a talk hosted by the Pittsburgh Technology Council, Schmidt did say that the firm wished to invest in creative new technologies
"Google has created a venture arm called Google Ventures. It’s an experiment, from our perspective. We have lots of cash, I think. As you know, we have a large cash portfolio," he said.
"We decided that we wanted to invest in the technology areas, both to get a financial return, of course, but also to accelerate the kinds of technologies that eventually Google will benefit from," he added.
"So it’s too early to say how successful it’s going to be, but we’re definitely investing."
Google announced last week that it had purchased reCAPTCHA, a company that produces software that safeguards websites against spam and fraud, which came as a sign that they are once again in the business of buying.
In the face of last year’s credit crisis and subsequent economic downturn, many multinational companies made substantial cutbacks. But Schmidt sent a strong message to the G20 leaders hat new technology could drive the world toward financial recovery.
He also made sure to acknowledge the host city of Pittsburgh, where Google has an outpost, by saying that the way the previously rundown steel city revitalized itself by becoming a high-tech hub has set the precedent for the United States and the rest of the world.
"After all, where will all the growth come from in America?" he asked.
"It’s not going to come from high-volume, low-wage manufacturing jobs. It’s not going to come from the service industries selling to ourselves. It’s going to come from industries like advanced manufacturing," he said.
"The growth is not going to come from moving money around between banks, which we’re pretty good at by the way. The growth is going come from investment decisions made here, in cities like Pittsburgh."
Schmidt urged the G20 leaders and businesses to expect great things for the world economy, which he said many believe is soon to look up.
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