Business News

CCTV Script 17/12/2013

This is the script of CNBC's news report for China's CCTV on December 17, Tuesday.

Welcome to the CNBC Business Daily.

Tech giant Google has bought Boston Dynamics - its eighth acquisition in six months. CNBC's Josh Lipton finds out why the search engine's got the hots for robots:

Fast, agile and lifelike, these are robots that can scale hills, gallop through parking lots and run like cheetahs. And now they're owned by Google, which bought Boston Dynamics, an engineering company in Massachusetts that makes the robots.

The robots have become internet sensations. Big Dog, which is the size of a small mule, can climb muddy trails and carry 340 pound loads. A youtube video of Big Dog has been watched 15 million times.

And then there's Cheetah, which is shown running on a treadmill at 29 miles per hour. That's faster than Olympian Usain Bolt. The New York Times first reported the acqusition, noting that it is the 8th robotics company Google has bought in the past six months. It's robotics efforts are being led by Andy Ruben, the executive who led the development of Android Google's mobile operating system.

Google isn't talking about the price of the acquisition or its purpose, but reports suggest the company's robotics efforts are aimed at manufacturing that electronics assembly. Ben Schachter, analyst at Macquarie says the internet giant is trying to take advantage of a long term opportunity of the robotics industry.

[Soundbyte on tape by Ben Schachter, Analyst, Macquarie] I think that all the things we saw as kids in the movies, is what they're really trying to make become a reality now. The fact that they put Andy Ruben in charge of this, a man who's had a very, very successful path at Google thus far with Android, really means a lot. It means that they're going to invest heavily in this, and I think they're going to take a very long-term tack. They believe it's a very real business.

[Piece to camera by CNBC Reporter Josh Lipton] Google's rivals already see benefits of such technologies. Amazon's rollout of 1400 robots at its warehouses from a company it bought last year call Kiva Systems could save it $900 million a year, according to analysts at Janney Capital Markets. Google is certainly steering far and wide from its focus on search, but Larry Page, its CEO, has talked about the importance of moonshots: big bold ideas that can seem like sci-fi thrillers. Analysts also point out that Google only puts money to work in businesses that can be profitable. In January, at least $5 billion in revenue in a reasonable amount of time. Josh Lipton, CNBC Sillicon Valley.

Li Sixuan, reporting from CNBC's Singapore headquarters.

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