>> and i decided that i

wanted to write about the company that was riding on top to create a digital wave band thought was crashing into a lot of traditional businesses i spent a fair amount of time reporting nine '04 the yorker and a book and i had done a book called three blind mice about how the television networks and this is the technological threat that face them which was cable to have two revenue streams which to do things the broadcast networks could not do an depended totally on advertising. they made the same mistakes that i found the media in this century made to ignore and be complacent about too not treat with alarm the digital revolution that you represent. i came here to try to understand who is as company

google what is unusual and why is it innovative? and tasso decided part of the narrative, i did know the answer but i wanted a narrative to tell your story but in the context of how you begin to change from just a search company to a media company and how o gradually you start to bob hawke into book publishing publishing, newspapers, adve rtising, telephone company. lowered television company like microsoft. and how most of the other industries ignored you and i begin the book with the story of the viacom the

second largest in the world with simon shuster, in tv, the -- cbs six cetera met with larry page and sergey brin he had no idea what kind of revenues or growth potential that you had and explained them is eric describe that to was going it for $2 million. of course, eric and hillary and sergey did did not know but they let him speak and then they describe the google business. there was no waste, you could tell who was

collecting, buying, it was much more intelligent than they said we don't want that kind of efficiency. we want to get people caught in the sizzle and that is what matters. we don't the advertisers to know what they're getting. of course, the google people were appalled by that. at the end of the three of our visit, he leaned over and part in the language i will be polite he said you guys are messing commented that use the word messing, with the magic. a course they tell the story we had an interesting visit this week you weren't messing with the magic and of course, that is what you do and among the things that

i learned is what engineers do and if you start with the assumption of the three men who run the company, the old ways of doing things are inefficient and you could achieve greater e efficiency and you think of the printing business, the a idea of killing trees, expensive paper, printing press, distribution purses online been multimedia form so the engineer says why? why doesn't have to be that way? why can't we sell ads to see who is based on buying based clicks other than the impression you think you have made. why can't you have the google news to aggregate 25,000 vs around the world etc etc etc.

as you do that you bump into traditional media companies if they got very upset. truth be told you were very late to understand as a company were upsetting these people. you were pushing the envelope of copyright, fair use, you wanted to do a search and that is wonderful. i love the 11 books that i have written can be searched and maybe a book that did not sell so well could be brought back alive but of the other hand i would like to be consulted as an author before somebody puts my book online to make it available. itoh storey of my second interview with sergey brin. he says let me ask you a question. why don't you just publish your book for free online? just put out there in many

people read it. that maybe true but who will pay me? i am now on leave from "the new yorker" to do a book. i need to earn a living and who will pay for my trip and my airfare and hotel? who will send me on the books the 11 like now. at that point* he changed the subject because he approached it like the engineer of someone who doesn't know the business but also i would argue less someone who did not have full appreciation of copyright and that you neither the cooperation of people who own the content in order to share it. i want to share my content but also make sure i earn a living. and one of the reasons you were sued initially was

exactly for this reason that larry had a brilliant idea of starting 2002 to digitize of the bookspan would now be great? it would be, you have the permission of the library's but did not spend enough time as it knitted by executives thomas seeking permissions of the copyrights and the authors. that's what you bump into with youtube and viacom but decided been trying to hold you up a less they see you $1 billion that you cannot take jon stewart off the air. you were brilliant engineers but often narrow in your approach to the world. copyright is one issue. i would argue your narrow about the privacy issue a

error and you're getting static not just u.s. government but governments in europe is on the privacy issue. i know eric is very sensitive to that but the truth is that there is a belief and i encountered and reports of this in the book, when you spend time one facebook how can people be concerned about facebook? so you become convinced privacy is not a big issue but it might be because you collect a lot of information. not my day but some of the sites and people get concerned. so now you would face, i would argue for the three issues that you do with that aroused the concern of governments around the world.

when allison to do a microsoft to cover the trial in bill gates that how could you think of microsoft is not doing good? of 95%, like bill dain one track all over the world and was a common source. and it is one distinction may make between plan and microsoft and plan it to google. gates and bomber and company wanted to destroy netscape i came away from my visit

thinking you are not cold businessmen but engineers. [laughter] but you don't mean to harm people but inevitably as larry page said is it true you will sometimes bump into traditional media? he said without an yeagley and bill gates would have been gleeful, i would not say sometimes but always. and often times in the fishing vague and let me finish the other point*. americans don't like powerful companies in you are a powerful company. has happened with microsoft

or less in your power to attack and weaken to go and they have a lot of influence the telephone companies and advertisers but not just here but europe and china and pump into the searches the don't want anything about tanks at tiananmen square. also copyright issues which i argue you're not particularly sensitive to and the privacy issue and that is an issue different governments do with different ways. so you are late to understand that menace and was late to understand the digital negative.

and i probably understood half of the words that or spoke literally to understand but i have the luxury of time to ask people but from yahoo! in 2003 or john sculley at apple in the late 80's early 90's and he was not an engineer. is that why these two companies fell behind the tests the people at the top of mike larry, sergey, eric could not understand the language that the engineers were speaking. as i listen to the engineers in those meetings a listen to. >> host: team asking provocative questions to say wait a second. that doesn't make sense because of xyz, i kept

thinking the engineers where the content creators you don't think of them as content creators but i came to think of the many engineers as the martin scorsese of the world. the applications if i spend two hours doing google search i am not spending two hours at cbs or the bucket of 51 facebook anything that occupies your attention i would argue including how content changes and storytelling is not the same. i learned that in my visit and gasol learned as i went from here back to traditional media and move

the executives and microsoft and advertising agencies and interviewing those folks, i came to realize how retrograde they had been. there are two types of people who deal with challenges and those who lean back to the and lean forward louis who are protected, a defensive, worried about how do i preserve what i have? , those people who leaned forward are proactive to say this is a challenge and i will seize the day. i will forge forward. i will not lie or complain google is killing me. and in fact, you hear more of that to and it makes me sad because those people who are winding -- whining are

doing god's work the blogosphere will never do what "the new york times" invested in afghanistan today or some newspapers are not very good his his -- newspapers sometimes doing four months with investigative reports and in the digital world you have a way of proving who is reading or watching and win editors mary page thought of the issue and publishers would see people are interested in britney spears but not government news. and they will cover what is most popular and that

worries and the terms of search. so they said we want to see if there is a way to help the near times and they did acknowledge that they discussed internally of buying the near times at google a. they never did anything about it because in the and they decided us search engine you cannot take sides or being perceived to favor one content over another. one of the things that and throw me about the book that most people that i interviewed here, i would ask where did the two founders of this company get the clarity that they had? at 25 years old did they say i will have a simple home page.

of the sec cannot have $3 million to have an advertisement i will not do what they do well and yahoo! were doing not try to do track people but i will send them to their destination that they want. of advertisers i will not bilk them but only 1 penny more and the second and the third highest bidder. how did they know building trust was essential? if you have that measure guidance you automatically know you can now buy the new year times because you would help to save a great institution but undermining the trust you need to function just as seven argue you should worry much more than i know you did when i finished reporting this book and if you think about it as

brilliant as the founders our, there is like bill gates at microsoft not necessarily the best people to determine the things that are not easily measurable. to say something like people's fears. if they fear microsoft or google, certainly other companies do, that is the fear that builds go to the european union messrs. gates said, we are not strong in the emotional intelligence pratt and that is true. where does that leave me

what do i take away from the book? i called the book mr. paige -- "googled" because it has changed the world and is said to me at one point as a chief economist, and the internet made information available but what google did was make it accessible was a great navigation system for the interfirst. that changed my life i have a library of my fingertips and every negative fight the fact i could have google of my fingertips and the thought to have books as well as scholarly journals available is very efficient for my time. and i could work at night or early morning and it is fabulous. the reason for the subtitle

the end of the world as we know it" is the traditional world this forever change and that is profound and some of that is wonderful and some of that is not so wonderful when i hear blocker say what is important is to preserve good journalist you could have won journalist and that is enough and bloggers can do wonderful things. the really good journalism as a team ever just as google is a team effort. you need editors and copy editors, fact checkers, when you do it investigative report lots of people are constantly involved in my life. when i had that piece and

they will say can you very that lead? i think this story is off you need more of the following to do more reporting. that is how journalism really works, a team is essential and that is the true seven "new york times." you cannot replicate that on less you have the resources of support and if we lose that, we lose a lot in our society, democracy, trying to keep institutions on this but to finish my remarks and to welcome any questions, i came away thinking you are a great company. i mean that. i don't say that just to placate the or to prove that beg to this seems you face

both the external threats and the internal threats. they are the obvious search engine and when i reported this book going to the microsoft conference -- conference and whispering we have a game changing we will announce a thing called cashback to change the world. [laughter] has anybody heard about that? >> and the vertical search they may do if i want to buy facebook visited getting my did a search i plunged into

my search box how many answers? anyone take a guess? 5 million. that is preposterous and totally inefficient and violates every rule the use a you believe. you could not give one answer because it is a controversy but 5 million? no. vertigo searches a threat to you have to worry about the loss is a good people and i saw this in microsoft who i know some of the differences between you and microsoft

but when you are that successful and you are give them lots of things from your laptop to the buses and excederin it is easy to lose sight of the real world. if you are an engineer living in the tight community of the advantage of being on the internet that microsoft avoided and did not have that exposure you are at risk and it is worth thinking about. and case, in my visit your plant it. when a coming back in a regular way so i will miss the food. i learned a lot and i thank you for that and i had nothing but wonder fault -- wonderful interviews here. thank you and i welcome your

questions. [applause] just raise your hand and i will call when you. >> how do we save "the new york times"? >> i wish i knew. obviously i think newspapers rose tried to create a payroll. they have to try to figure out how to get in another stream of revenue. the notion of being totally dependent on $0.1 of revenue eric schmidt of the 11th interview last december i said to him i just left the president of stanford it was

not a subscription but it to be reliant do you agree? he said i do not. and my last interview four months later said do you still agree with what you said to me in december? he said i have changed my mind. crossandra singh wrote a book that came out to in july and added a chapter at the end and the essentially seems to contradict the rest of the book to save three is not the answer. the recession that began late 2007 was a wake-up call for a silicon valley and peoples digital world to realize you make this a

mistake the broadcast networks made and you relied on a source of revenue that was shrinking. advertising and had to figure out some way. "the new york times" has to figure out another source of revenue. my last visit the coming downstairs offices cafeteria 43? the chairmen who went to see eric and the founders. is there some way to pump more advertise same dollars so far the danger is if they create a payroll what if newt -- of the newspaper is it not have a similar payroll? they given permission from the wire service since o were "christian science monitor" six-- per week online.

january and fruit-- reinforce the notion and the other problem is how do you change the culture that basically says information should be free? then the haq question. i read what murdoch said to sky tv we will stop google from searching but and i think his e-mails are printed out so he can read them by the way. [laughter] and he tries to put it to you on the defensive he is paying 125 million to the book publishing industry and to those comes to realize you need professional content to use the generator content andy advertiser does

not want their ads you have to have more professional content and to generate more income but i wish the near times hedican answer but i would rather be the near times zandi dispatch for the detroit news alert other newspapers. they have a particular problem of a huge debt load that are coming due and they have to pay them. >> the npr interview said it was full of contradictions and and what are those experienced that it. >> some are benign some are less but one of them is if i

come here to ask any of view how much does an engineer make lower how many indian citizens work at two collor if you ask any factual question, i might as well be talking to the cia agent. i do not get an answer the notion of transparency has its limits. some of that comes from where a page who wrote a book about that who invented electricity although he shared the secret died day for man and a dissing got the credit -- credit soleri page talks about that but talks about the importance of keeping things secret and

there are some that are worth keeping. you keep your black box at algorithm is a secret for good reason. you don't people to game the system but the other contradiction is mr. is the genuine idealism of that the slogan don't be evo was created that resonated because you could embrace that to be true as be fitting who you were. but then you make compromises and that is a contradiction inevitably and here you are with some nice price lobbyist but the truth

is in the adult world this lull of compromise and contradiction. that does not mean it is goody there. it may satisfy you but i was at the meeting and someone said how could you close the phoenix office? fall 2008. its bid is evil. to those people it may have seemed the role. i think they make a business decision beds evil is in the eye of the beholder it is self righteous. >> you talk about how content creators have the book the deal and the lawsuits and also the music industry which has similar

problems although google is not involved so with the at gene chain business. >> google is a surrogate for the internet and did you think about the music company is committed suicide was not murder. this suicide was to have a business model we will only sell cd's you have to buy it all of the songs on the album then 2001 comes i tombs and a sighting $0.9 you can buy any song and listen to a portion before you buy it. why didn't they make good deal with online why didn't they buy napster your? why did they resist?

what about newspapers? one this in years ago they have the on-line edition but if you go back to that point* in time that reported to the newspaper editor editor conversing with the internet to realize the internet was not a brand model the multimedia show that you could not break the story that is insane. craig's list. ben "new york times" approach them with the idea of the digit a classified and use to get 1/3 of advertising revenue from classified. before graceless was born it was proposed to the near

times and others to create a digital consortium to sell classified ads online. we don't have to do that. hello? i did not set out to disrupt to kill businesses but you are disrupting them you there main forward in our be better if you lean forward 10 years ago and now. >> to comments. recently nobody asked me if i am in the and. [laughter] in other comment is i pay $35 per month the contents

may be free but i don't mind paying for the internet baidu have a problem i don't mind paying for this like my isp just like cable. >> let me understand you say you pay $35 a month for your broadband connection you consider that paying for news? >> no but the internet is not free. i know i pay that $35 for connectivity not myself personally but why is it

that content providers say they cannot get that money? >> they can bet basically the problem is to go is providing many more readers were then a year times to do google search shura google news to only give the headline and only click on the near times link them they are allowed to sell advertising. the basic problem in florida the same ad in the newspaper even if you have many more readers, the and come if they close the print edition to make up for those lost

subscribers that is a conundrum. maybe some day it is not 10% is 50% right now the math does not work so i have two faye keira if they can get money from the isp, a great. you, great. charge micro payments are subscriptions, agreed to. if they can, not so great. >> from what will prevent google is it back its peak or more changes in the decade? >> i did detect hubris that

particularly if you think about government which i'll think this government was particularly sensitive about because full of idealism and the sense we don't do evil we are advancing doing wonderful things. you are a powerful company that is bumping up issues of concentration of power advertisers are worried or that you selling books to amazon which you will and control of the price point* just as wal-mart and amazon. never is a certain hubris that affects the leadership and the belief your very close to the obama administration, and you are. eric is an adviser and david

drummond, an early supporter people who have left google to work in the administration i have been reporting a piece on back at "the new yorker" people say literally anything we want we can get from the fcc and the obama administration. but what you mess with the hubris is with the pro regulation with the lack of regulation there is the same concern you need more government intervention and we already heard that s position of the justice department she will look very closely at companies like google and the market

power and i think you do-it-yourself if you are not in four tough years ahead because of your friend in the white house and made a wonderful presentation in 2007. you would be blinded you don't realize that not to mention all the other governments that threaten all over the world. >> but were there any interest dain perot's between the google -- google executives? >> there is a great book likely to increase since then called the innovators to love the. he makes the point* and talks about many companies sense years and roebuck that

had a great business essentially and tried to protect that business and they saw new technologies coming along with wal-mart and by catalog where i am says with in the hard research business and microsoft, there packaged software business then to be invested in that can take money from our exist same business? that is the dilemma do sacrifice your existing business to make a bet on what you think might be the future? it is a wonderful book with many been examples and you

will face that here. one of the reasons i was told you did make a bid to buy twitter was because you were worried about the possibility of a vertical search and i don't think that is a virtue from your existing business but could enhance its but you have those issues do have more content at youtube that advertisers want to buy? what you need for your search? maybe. >> on that note, thank you very much. >> thank you. [applause]

>> one of a large display of books -- book expo is the perseus group several and brands are under that name and one of them is public affairs and the publisher is suzanne weinberg who wants to tell us of the new books and the future books where should we start?

>> it is always so great to see you. starting with the book calling the philanthropy of george soros. give baying away billions of dollars through the open society foundation that is based on his principles it covers the programs around the world and includes an essay called my philanthropy where he lays out his principles and what animates >> right next to that it is poor economic. >> it is one of the big idea books we have had. they are the founders of a m.i. tea party lab to pioneer the idea of let's do

experiments and observations to learn where we should put our money we are award winning acclaim economist whose work is getting attention this is the most important on microfinance of thought we had to have this book. >> does that include the contents of microlending? >> the micro finance banking to the port it does have some about micro lending in the research on the ground but a lot of other techniques how poor people really live and what they choose to spend their money on and almost like controlled experiments to

see what helps in the long run and how do prevent malaria or when people seem to have not enough money for food why did they buy a tv? >> a very interesting cover with the not. >> that is on tying the nine is a good motif but we felt those words were so strong we did not want any illustration to get in the way. >> and natural selection. you burberry eight excited. >> it was a proposal that it is what we are here to do and i call the author a scholar of the journalist

who has worked at places like the chronicle of higher education and bang going back to beijing but a lot of us say one child policy and we say that is funny. but she did not move on to say what do you mean? how did this happen? what will happen when these boys grow up and there's no one to mary? there is nobody to marry and what will society be like? she also went back to research how did this happen? some of this is the one child policy but some of it is zero population growth

and the population control unintended consequences that will surprise people. >> and natural selection. right next to that is to books about troubled nation. >> dancing in the glory of monsters by jason stearns they got the book from a wonderful journalist who has written about africana and she said nobody knows as much. you should talk to him. he had a manuscript but they said there is a book and here and they went to work together to hone the book. the claim is you cannot understand anything in the newspaper about the congo if you have not read the book because the story is that complicated and it is such a tiny piece of the whole of

what is really happening. the reviews have borne this out the "wall street journal", "the financial times", i could go on and on the reviews are an amazing response and we see people not backing away but i want to hear more about the congo >> as everybody knows partners and health and has a very interesting medical school and practice saying on the ground any defect of the earthquake and the level they got to know haiti is i want to write about it what

is happening and is the response adequate? cialis uses this as an opportunity to get involved in the issue and talks about people are involved to write about this. not only about the experience but also to give voice of those have not been heard from. >> the photo on the cover is powerful two except the mix of emotions and think of the recovery and its is such a mixture of hope amd despair

and understanding everybody is folderol. >> and over here on the board when business come about? >> comes out july this year. theobald and reckless life sally jacobs is a longtime correspondent and when they did their profile but not really deep enough said if he did select did she had never done a story she felt that committed but has been tomb kenya many times and put together the wyss story

in a way that is rebidding and revealing and i cannot really know this but i think if all, read this book he would learn things about his father that he doesn't know. i think it is an amazing contribution to our err merck president and his family. >> what is it like to added to the "journal"? >> it is an interesting process. journalist can write very fluently there used to the ideas of changes so they're not studying their prose but sometimes the arc of a book verses featured stories can be different and the editors find that is what they were:to get to the arc and a story line together. the arc is amazing the focus is where it should be on

barack obama senior and his time in the u.s. that includes hawaii and harvard and how immigration service decided maybe you should leave and what happens when he goes back to kenya. >> very quickly three more books starting with peter thomson and. >> the words of afghanistan is the epic book because the knowledge goes very far back in with the american involvement 90 diplomatic level speaks russian and different languages who could read documents that not many could master including some archives that nobody had ever used before

in their research or work. he brings say passion and a level to this story that we think this unique and quite an effort to get this together but absolutely worth while. it will see the reading public in july. >> to books on the media deal from inside the near time. >> that deal from hell is a story about "the chicago tribune" and what has happened to media businesses. jim a-share was a longtime reporter became the managing editor of the "l.a. times" two has the groundwork and management experience but can that decision making meetings it is the fall of varnished story of what

happened to new media businesses by focusing on the story of the tribune company. page one is a book in our serious doing books and films like "waiting for superman" this is the new film called a page one inside "the new york times." we have done a book from eight npr reporter that is a collection of essays food takes the subject beyond the film limitations. in can get you the stories but only tell you so much but these essays tell you more fully what is going on and today. and what the future may look like. >> this is vague the quiet american.

>> the books that we are very proud to be involved richard holbrooke widow came to u.s. and said to put together a book that captures richard holbrooke spirit and what he stood for and the work he did. the plan is to publish on the anniversary of his death in december, we have wonderful contributors writing about different parts of his life and career. the it now, bosnia, and also from his own work including more speeches and essays and give us an incredible portrait of old both in his own words and reflections on his career by p