Google Press Day, Live

Google’s 2009 shareholder meeting is today at 2 p.m. pst. As usual they’re holding a press event prior to the shareholder meeting. Chairman and CEO Eric Schmidt, SVP Corporate Development David Drummond, VP Search Products and User Experience Marissa Mayer and VP Product Management Susan Wojcicki are attending and taking questions.

Key topics discussed:

Apple: In response to a question about the FTC inquiry about overlap with the Apple/Google boards of directors, Schmidt says Apple doesn’t see Google and Apple as a primary competitor, and so there shouldn’t be issues with him being on the Apple board.

Antitrust: Drummond says he expect to see increasing antitrust scrutiny as Google continues to be successful. Schmidt says information is incredibly important. Governments will pay attention to what Google does, he says, and will hold Google to their core principles. Schmidt says Google understands that there are consequences to mistakes. Schmidt says Google is always trying to find a balance between what their end users need and other concerns. “We are more careful about when and how we do things that are going to raise concerns of any party.” He brings up book search, says careful planning has lead to a historic agreement that is winding its way through the court system.

Monetization of social networks: Susan “we’ve learned a lot about how to monetize this inventory, we believe there are ways to monetize over time but different from search because by nature different from search.” Says they’ve been working on how to serve those ads differently, talks about ads in activity streams.

Google selling AOL stake: Drummond – it was a financial decision to sell the stake. Eric quips “we love aol, we sent our best guy there to run it.”

Plans for customized news: Marissa, who just testified on news to congress, says they have a team looking at how news will evolve. how stories are presented. navigation. finding and traversing news. some things aren’t as good in online news. comments. what to suggest next after a story is read. presentation of stories and how people move from one story to the next. Marissa is talking about the recent google labs products around news.

YouTube: question on estimated YouTube losses this year. Eric says he “believes youtube will eventually be a successful and profitable business. I don’t know how long it will take. it is a huge traffic phenomenon.” Susan says the huge amount of traffic has attracted lots of advertisers. They’ve monetized hundreds of millions of videos, she says. Preroll formats are being tested, she says, and there’s an opportunity to serve ads in different formats. On music videos, need a click to buy next to the video.

Cost cutting v. innovation: Question on how google keeps innovation going with cost cutting so aggressively. Eric says they’re focused on being more precise in their actions. Susan says Google is focused on small teams that act like startups. Eric says its too early to speculate on what Google looks like post recession. Says Internet growth not slowing and people spending more time online.

Google Ventures Drummond says they’ve made initial investment and hired partners. Goal is to go early stage, professional investing in areas they care about, which is a wide variety of areas.

Cost per click decline: 10Q showed a 14% CPC decline, asked to comment. Eric says they won’t comment much beyond the public statements.

Android: Is android an open platform for innovation v. carriers trying to splinter. Eric says this is a problem with any open source project.

China situation: Drummond says it is an ongoing challenge to operate there. YouTube continues to be blocked. issues with google.com from time to time. Says there’s a preference for local businesses there. It’s a difficult road, he says.

Google and Twitter: Marissa says lots of interesting things happening. Interesting from a search perspective. Some overlap with google trends. “we’re interested in being able to add microblogging into search, but no specific plans.”

Android on Netbooks: Eric says no announcement on netbook strategy but says that netbooks are very real, and that people are using netbooks that are consistent with the cloud computing model. client device to access cloud services, google wants their services to work with netbooks and to keep an eye on this space.

Live blogging continuing…

Google forms $100 million venture fund

Google Inc is forming a $100 million fund to invest in early-stage start-up firms.

The fund, to be called Google Ventures, will be wholly owned by Google, but will operate as a separate entity and will seek investment opportunities to maximize returns rather than looking for investments that strictly fit with Google’s strategic vision.

Rich Miner, a co-founder of Android smart phone software that Google acquired in 2005, and Bill Maris are the fund’s two managing partners.

Earlier this month, Reuters reported that Miner appeared at an investor conference for Internet start-up companies with a name tag that listed his name alongside Google Ventures.

Miner said on Monday that Google Ventures will look at a wide variety of companies to invest in, including consumer Internet products, information technology, health care and biotech, among other areas.

“Just as we were founded by entrepreneurs, we think we can help some of those next entrepreneurs with the next great idea,” said Miner.

Google Ventures has already invested in Pixazza Inc, an photo-based online marketing service and Silver Spring Networks, a company that uses technology to improve the efficiency of power grids.

Google has invested in other companies in the past through its philanthropic division, Google.org. While Google.org may continue to make investments from time to time, Maris said that Google Ventures will now function as Google’s “primary vehicle” for making venture-style investments.

Several high-tech companies have in-house venture capital arms, including Intel and Motorola, But Maris said that Google Ventures will have more in common with traditional venture capital firms.

“We’re making financial return our first lens,” said Maris. But he noted that a part of the appeal of Google Ventures for start-up firms is the relationship to Google and its 20,000 employees.

The fund will focus primarily on companies seeking seed funding and early stage funding, and Google Ventures will have the ability to make investments ranging from tens of thousands to “several tens of millions” of dollars, Maris said.

Google Ventures Opens For Business

The long awaited Google venture capital fund, Google Ventures, is now open for business. The Fund is led by managing partners Bill Maris and Rich Miner.

The fund’s FAQ says they’ll invest in just about any type of startup (”consumer Internet, software, hardware, clean-tech, bio-tech, health care and others”) and they’re willing to invest just about any amount you might need (”from seed funding to tens of millions of dollars, depending on the stage of the opportunity and the company’s need for capital”). It’s not exactly what you’d call a tight investment focus, but hey, it’s not like they need to worry about keeping limited partners happy so they can raise the next fund.

They’re also happy to invest along side other venture firms and strategic partners. No other commercial arrangement, such as a partnership, is required (so no, you don’t have to build your service on App Engine).

This is, Google says, their primary engine for venture-style investments going forward.

The FAQs also say the fund will be actively involved with investments (”We believe that our active involvement will help to create value, so we look to work with management teams to maximize the impact of our investment and their technology or innovation”). That may be somewhat over-ambitious, depending on how many investments they actually make. There are only two partners after all.

Is this a good investor for your startup? The cache of having Google behind you is great for marketing. But if you think you have the next new Google-killer search idea, you may want to bake it a while before showing the technology to these guys.