Google has considered buying a newspaper or using its charitable arm to support news businesses seeking non-profit status, but is now unlikely to pursue either option, Eric Schmidt, chairman and chief executive, told the Financial Times.
His comments, in an interview set to appear on FT.com, will cool speculation that the deep-pocketed search engine operator might save franchises such as the New York Times that are struggling with debts and declining advertising revenue.
Google had looked at buying a newspaper but was "trying to avoid crossing the line" between technology and content, Mr Schmidt said. It was instead working with publishers to make their websites "work better" for online advertising.
More broadly, he added, Google had concluded that potential acquisition targets were too expensive or carried excessive liabilities.
"Clever ideas" about sheltering newspapers in non-profit structures had been suggested to the Google.org foundation but "they're unlikely to happen without some massive, massive set of corporate bankruptcies", Mr Schmidt said.
He would not comment on any interest in the New York Times, in which Google was offered a 20 per cent equity stake held by Harbinger Capital Partners, an activist US hedge fund. However, he thought David Geffen, the DreamWorks co-founder also eyeing the paper, would be "an excellent owner".
Subscriptions and micro-payments, seen as possible supplements to flagging online advertising revenues, would work for specialised content but were unlikely to do so for general news such as political reporting, Mr Schmidt said.
In spite of plans by publishers, including News Corp, to try charging for general news, people were highly unlikely to pay extra when so many free versions were available, he said.
Mr Schmidt played down industry calls for Google to increase the amount of revenue it shared with news organisations whose content appears on Google News, saying it would have to take money from "another pocket" to do so.
Instead, he said, Google was working with the Washington Post and other newspapers to improve their online products.
Mr Schmidt, a member of US president Barack Obama's economic team, ruled out a move into political life or another corporate role in spite of loose speculation that he might be tempted by the California governorship.
"I can assure you I'm not going to run for politics. There is no second life after Google," he said.
SOURCE: Financial Times
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