Google "won’t buy newspaper"

The CEO and chairman of megafirm Google told the Financial Times the company is not interested in buying a newspaper.

Google had toyed with the idea of buying newspapers but has consulted the oracle in California and has decided against the idea.

The New York Times was believed to be one of the newspapers that Google contemplated “helping”. It had been offered a 20 percent stake in the NYT.

Eric Schmidt admitted in the interview that Google had been in talks with the Washington Post with a view to developing online news versions that will garner advertising.

He said that news gathering and profitability is an “uncomfortable relationship”. He said that newspapers made the majority of their revenues from classified and display ads – a model that was always going to be challenged by technology.

Schmidt said that he felt that being on the board of Apple wasn’t a problem, but he has not taken part in discussions on the iPhone because of the Android question. The fact Google has $18 billion in cash doesn’t mean the firm is going to go shopping – he wouldn’t comment about buying Twitter, the report says, here.