Even though the world’s economy is rapidly crumbling, Google says they have nothing to fear
Google CEO Eric Schmidt said recently that Silicon Valley will survive this economic meltdown. “This is the sixth or seventh cycle I’ve seen in Silicon Valley. I think we’re better positioned than ever.”
Regarding Google specifically, Schmidt said the company is in a good position to weather the economic storm. “The company has a very large amount of cash in very, very boring and secure investments. That was the right decision then and especially the right decision now. As a company, we’re fine,” Schmidt said. “The things that could affect us is if it affected our customers…If this debacle caused a huge change in economic situation, that could affect us.”
So is Google worried that businesses will have to pull even tighter on their purse strings and cut advertising spending? Google’s President of Advertising and Commerce for North America, Tim Armstrong gave this round about answer:
“In general, it’s something we watch closely, but we’ve seen in multiple cycles we’ve gone through (that) as companies get concerned about what they’re spending and how they’re spending, they move toward more accountable platforms. Some companies have shifted even more money to the digital landscape. We have one of the most transparent, accountable models in the digital landscape.”
So, I guess if Google isn’t worried then we all have nothing to worry about, right?