Exploring the Google-Apple Relationship

by , 5:05 PM EDT, August 31st, 2006

While many online pundits see Google CEO Eric Schmidt's addition to Apple's board of directors as a move against Microsoft, The Motley Fool's Jack Uldrich has a different take on the situation.

He wrote: "In the short term, I think it's more about Apple landing a spot for its iTunes digital media service on Google's toolbar, and Google finding new ways to leverage its advertising network. In the longer term, though the picture begins to get cloudy, I have a sneaking suspicion that video content will play an increasing role in the two companies' future relationship."

Mr. Uldrich sees a bridge between the two companies in the form of former Vice-President Al Gore, who also sits on Apple's board and who founded Current TV, a cable network that shows many programs submitted by viewers. Mr. Gore, along with Marissa Mayers, Google's vice-president of search products and user experience, both recently attended the Edinburgh International Television Festival, where Ms. Mayers told the audience that her company is aligned with TV, while Mr. Gore noted that he thinks Current TV could reach 50 million viewers by 2010.

However, Mr. Uldrich did note: "I can easily envision a scenario where Google, despite its reassuring words, does become a rival to television in some way. If Google does have plans to eventually rival TV, I'd simply encourage the company to be more candid about them. But then again, showing its hand so early might be just the sort of strategy that Al Gore would advise Google against."