Eric Schmidt Talks About Google's Acquisition Strategy at Sun Valley Conference in Idaho [Video]

Google Executive Chairman Eric Schmidt at the Sun Valley conference in Idaho last week, revealed the most interesting nuggets of info -- the fact that Schmidt could envision startups wanting to build on top of the Google+ platform, which now has 10 million users in its beta but no API in sight."You could image the […]

Google Executive Chairman Eric Schmidt at the Sun Valley conference in Idaho last week, revealed the most interesting nuggets of info -- the fact that Schmidt could envision startups wanting to build on top of the Google+ platform, which now has 10 million users in its beta but no API in sight.

"You could image the scenario where the social platform is so successful that you've got startups that are building on top of Google + that are so incredibly sexy and exciting that we would pay top dollar very fast … That's a great scenario because then you know you're winning," he said.

Schmidt also outlined how Google calculated the amount of money it was willing to pay for the company; Namely, the value of a deal equals the value of the team plus the value of the year it would spend a Google team to create the same product. He emphasized that M&A at Google was very bottoms up, "A product manager that has a problem and [needs to] solve that problem" is the raison d'