CRAMER: PEOPLE FEEL YOU DON'T PROVIDE ENOUGH GUIDANCE, MANAGEMENT SHEPPARDING.

SCHMIDT: WE DON'T PROVIDE ANY GUIDANCE.

CRAMER: THAT'S BECAUSE --

SCHMIDT: WE DON'T WANT TO GET IN THE WAY OF RUNNING THE BUSINESS. IF WE STARTED GIVING QUARTERLY GUIDANCE THE COMPANY WOULD FOCUS ON THE QUARTER RATHER THAN TRYING TO CHANGE THE WORLD.

CRAMER: TOTALLY TRUE I WISH OTHER PEOPLE WOULD DO IT. THERE ARE 31 OUT OF 33 PEOPLE RECOMMENDING THE STOCK, SO IT MAY NOT HAVE MATTERED YOU'RE NOT HAND HOLDING.

SCHMIDT: WELL THESE ARE THE SMART PEOPLE>

CRAMER: INFORMATION TECHNOLOGY AND ADVERTISING.I THINK YOU HAVE REVOLUTIONIZED EVERYTHING. COULD YOU TELL ME GOLDMAN SACHS IS USING A PERCENTAGE OF THE GDP.RIGHT NOW, YOU'RE .7% OF THE GDP OF THE UNITED STATES. HERE'S WHAT I WANT TO KNOW. 600 BILLION DOLLARS IN ADVERTISING, IS IT FAIR TO THINK THAT SOMEDAY YOU WILL CAPTURE 10% OF IT.

SCHMIDT: WELL WE COULD. BY THE WAY THE NUMBER IS LARGER THAN 600 BILLION IT'S ABOUT A TRILLION GLOBALLY. IT IS PERFECTALLY POSSIBLE IN THE ONLINE WORLD IT WOULD BE HALF WE WON'T GET 100%.WE DON'T KNOW HOW LONG IT WILL TAKE, BUT WE KNOW EVERYBODY'S MOVING FROM THESE TRADITIONALLY MECHANISMS TO TARGETED AND MEASURABLE ONES AND ONLINE IS WHERE THE MEASURABLE ONES ARE.

CRAMER: RIGHT NOW PREDOMINATELY DESKTOP, BUT COUNTRIES LIKE JAPAN, MOBILE COMPUTING. IS THAT GOING TO BE UP TO SNUFF AND CAN YOU MAKE AS MUCH MONEY IN MOBILE COMPUTING BECAUSE OF THE CELL PHONE COMPANIES?

SCHMIDT: WE CAN MAKE MORE IN MOBILE THAN DESKTOP EVENTUALLY. THE REASON BECAUSE THE MOBILE COMPUTER IS MORE TARGETED. THINK ABOUT IT YOU CARRY YOUR PHONE EVERYWHERE IT KNOWS ALL ABOUT YOU. WE CAN DO A VERY, VERY TARGETED AD.OVER TIME, WE WILL MAKE MORE MONEY FOR MOBILE ADVERTISING.

CRAMER: THERE ARE QUESTIONS THAT I'M READING, THERE'S A LOT OF THE STUFF ABOUT YOU IN THE PAPER EVERY DAY.ARE YOU COMPETING AGAINST THE ORIGINAL CONTENT PLAYERS?

SCHMIDT: WE THINK WE SEND A LOT OF TRAFFIC TO THEM. PEOPLE COME TO GOOGLE AND LOOK FOR INFORMATION AND IMMEDIATELY GO TO THE CONTENT PROVIDER. WE DONT WANT TO DISINTERMEDIATE THEM OUT, WE NEED THEIR CONTENT. WE NEED THEM TO BE SUCCESSFUL WE BUILD ADVERTISING PRODUCTS FOR THEM AND SO FORTH . VERY MUCH WE MAINTAIN THAT SEPARATION.

CRAMER: SO WHEN I READ THAT, I SHOULDJUST THINK TWICE ABOUT WHETHER THEY ARE NOT -- THERE IS A BIAS. YOU GUYS HAVE GOTTEN SO BIG, YESTERDAY, THERE WAS AN ARTICLE ABOUT HOW YOU DIDN'T HAVE GEORGIA IN THE MAP.

SCHMIDT: THAT TURNS OUT NOT TO BE TRUE.WE HAD THE SAME AMOUNT OF GEORGIA BEFORE THE WAR AS AFTER.WE'RE ADDING MORE GEORGIA GOING FORWARD CAUSE IT IS SUCH AN INTERESTING TOPIC.

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