Schmidt in CNBC interview: We're concerned about Microhoo

Schmidt is concerned about a possible Microhoo combination.

(Credit: CNBC)

In a broad interview scheduled to run on CNBC at 4 p.m. EST Wednesday, Google CEO Eric Schmidt made it clear he's not pleased with the prospect of a Microsoft-Yahoo combination.

In the interview with CNBC's Maria Bartiromo, Schmidt said that given Microsoft's history of antitrust issues, an acquisition is cause for concern, according to a transcript of the interview. He also said a two-week partnership trial with Yahoo went well, and said he expects it to be one of several options Yahoo's executives are considering for their future.

"Well, the long and short of it is that we did a test for about two weeks, which has since ended, where Yahoo took a small percentage of their ads and replaced them by ours," Schmidt said. "We did this as part of a commercial conversation, which I obviously cannot go into, but it's one of the strategic options that we believe Yahoo is considering at this time."

Schmidt, who was a senior executive at Sun Microsystems and CEO of software-maker Novell before taking the helm at Google, has competed with Microsoft for years, and it was very clear in his conversation with Bartiromo that he is not keen on the Redmond, Wash., company landing Yahoo. Schmidt said:

We actually enjoyed working with Yahoo. We also compete with them. They're a well-run and, I think, impressive company. We've primarily been concerned about the possibility of a Microsoft acquisition of Yahoo because of Microsoft's history and because the assets that Yahoo has are quite valuable. And we actually think that in the wrong hands, they could be used in the wrong way.

Nonetheless, beyond saying the Yahoo effort went well, Schmidt did not tip his hand about Google's response if it should face a Microhoo combination.

"There's a big debate within the company...people are concerned about the history, as I mentioned, and the possibility of a merger. So I don't think we really know yet. We debate it all the time," Schmidt said.

Some on Wall Street expect Microsoft to announce a hostile takeover bid of Yahoo as soon as Wednesday afternoon after the close of trading.

[Spartan_458]

My name is Eric $chmidt....

....and I'm a huge hypocrite.

Google is no different from Microsoft. They want as much of the pie as possible, too. It's just that, even if Microsoft bought Yahoo, the combined search market share would be about 31 percent. Instant messaging? Pretty sure the Microsoft already has a deal with Yahoo Messenger compatibility and that they have a huge market share in other countries. Wouldn't change too much. And AIM is still a huge competitor, too. E-mail? That's the only place where a possible monopoly would happen (not that that's against the law, it's exploiting a monopoly as a means to get ahead that's illegal), and even then, consumers still have lots of other choices when it comes to email. Gmail, AOL, AIM, Earthlink, etc. All in all, this is just Google trying to keep its near-monopoly on the search market alive and preventing significant competition while trying to stick its grimy paws in everything else. Typical.

[FutureGuy]

Google is a

wolf in sheep's clothing, MS is what it is. I would rather deal with MS then a hypocrite company like Google.

[fred dunn]

Competition is always good...

even when we're talking about Google.

[dhavleak]

"in the wrong hands"

Eric Schmidt said: "the assets that Yahoo has are quite valuable. And we actually think that in the wrong hands, they could be used in the wrong way"

Since when did tech CEOs start playing politics of fear? It's like everybody has declared MS a terrorist these days and just insinuating that MS might have some sinister motive is enough to get people running in the opposite direction.

Do no evil, indeed..

[Spartan_458]

I know.

I wish everyone would lay off Microsoft for a little while. I'm not a Microsoft fanboy, but I do think that their products are innovative and usually pretty high quality. I care about what I get when I buy something, not about brand loyalty. I know Windows has a monopoly. Consumers still have other options in the form of Mac and Linux. Microsoft isn't exploiting the Windows monopoly now. I know people say Vista sucks, but what really is there wrong with it? I've used it for a year and had less problems than I did the first year with XP. Yes, it runs a bit slower, but my computer is a bit slow. Seriously, what heinous crime has Microsoft committed that everyone seems to hate them? Look at what Google or Apple are doing sometime. I know they're the sacred cows of the tech world, but wouldn't a little scrutiny help?