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Schmidt: Microhoo Would "Break the Internet"

Portfolio's Russ Mitchell scores a lengthy interview with Google CEO Eric Schmidt in which he reflects on a variety of subjects, from the Microsoft-Yahoo deal to DoubleClick, Android, and of course, recession. Asked how a combined Microsoft-Yahoo would hurt Google--particularly when many analysts are saying the opposite-- Schmidt says it would really serve to limit consumer choice, particularly applications like email and instant messaging, where Microsoft would have a dominant share.

Schmidt says it would "break the Internet" for so many important properties to become part of Microsoft's universe of proprietary software. "All internet-based systems today are highly interoperable, open systems," he said. "The whole antitrust trial that Microsoft went through was really about it breaking that."

As for the impact of the recession: "There's evidence that more-measurable advertising does better than unmeasurable advertising during a slowdown. Ours is the most measurable of all the advertising systems in the world. We did well in 2001, 2002, in that recession, because people wanted measurability."

Read the whole story at Portfolio »

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