Google co-founder Page takes over, targets Facebook

Google co-founder Larry Page talks to reporters as CEO Eric Schmidt looks on, in Sun Valley, July 9, 2009.

Credit: Reuters/Rick Wilking

By Alexei Oreskovic

SAN FRANCISCO | Thu Jan 20, 2011 6:52pm EST

SAN FRANCISCO (Reuters) - Google Inc co-founder Larry Page will take over as CEO from Eric Schmidt, a surprise that signaled Silicon Valley's most powerful Internet company was taking the offensive against fast-moving rivals like Facebook.

Schmidt will step aside on April 4 and make way for Page -- who created the company with fellow Stanford University alumnus Sergey Brin in 1998 -- to take the reins of a company that has dominated Internet search for a decade but is in danger of losing traffic to social networks like Facebook and Twitter.

"Day-to-day adult supervision no longer needed!" Schmidt tweeted after the announcement.

Schmidt, who became CEO in 2001 to bring more management experience to a then-fledgling company, will assume the role of executive chairman, focusing on deals and government outreach, among other things. Brin will concentrate on strategic projects.

"Larry is ready. It's time for him to have a shot at running this," Schmidt told analysts on a conference call.

Shares in the Internet search and advertising leader rose about 2 percent to $639 in extended trading.

Just days ago, Apple Inc CEO Steve Jobs announced a leave of absence, leaving lieutenant Tim Cook in charge of day-to-day operations. Like Google, Apple also announced results this week that blew past Wall Street's estimates.

"The Street will think it's a negative, that there is probably some issue going on. Google is trying to get more efficient and trying to get a tech guy in the seat to compete with Facebook," said UBS analyst Brian Pitz. "I don't think it changes anything strategically where the company is headed."

News of the change came as Google reported a 29 percent surge in both net profit and net revenue that beat forecasts.

Net income, excluding items, of $8.75 a share outstripped Wall Street's average forecast of $8.10.

Net revenue, excluding fees paid to partner websites, was $6.37 billion. Analysts polled by Thomson Reuters I/B/E/S, on average, were expecting net revenue of $6.06 billion.

STREAMLINING

The world's top Internet company is recruiting and going on an acquisitions spree, aiming to ensure its online products remain popular as surfers turn to new services like Facebook -- now the most heavily trafficked website -- and wireless gadgets.

On a conference call with analysts, Google CFO Patrick Pichette said a 10 percent, across-the-board pay raise instituted late last year was a direct attempt to staunch a flow of talent to hot Web upstarts in the Valley.

Google tried to buy fast-growing online local-shopping service Groupon for $6 billion but was rebuffed, Chicago Breaking Business, a Tribune Newspaper website, and other news outlets reported.

Data security center in Utah targets cyberspace

By James Nelson

CAMP WILLIAMS, Utah | Thu Jan 6, 2011 8:17pm EST

CAMP WILLIAMS, Utah (Reuters) - A $1.5 billion dollar National Security Agency data center under construction in Utah will be an important step in dealing with rising volumes of information in cyberspace, officials said on Thursday.

The NSA will utilize the massive facility, which will be built under direction by the U.S. Army Corps of Engineers, to gather and process information from different branches of the U.S. intelligence operations.

"It's a very important step in protecting the interests of our country. Banking, financial interests, Internet and national security. This is an important step forward in all of those," U.S. Senator Orrin Hatch told Reuters at a groundbreaking ceremony for the Data Center.

Officials tout the data center mission as providing technical assistance to the Department of Homeland Security, provide intelligence and warning to cyber threats and carry out cyber-security objectives.

"Just as we defend our lands, America also needs to defend cyberspace," Hatch said. "The Data Center will be part of our expanding efforts to defend our Department of Defense computer systems from cyber attack, and will play key role in helping Homeland Security keep our government's civilian computer systems safe."

The new center will be built on a 240-acre site within the Camp Williams military compound. When completed in 2013 it will provide 100,000 square feet of computer space and one million square feet of total space.

The Utah site was picked over 37 other potential sites.

Hatch pointed to Utah's higher education institutions, language facilities and the large number of people who speak multiple languages as selling points.

Officials estimate that up to 10,000 people will be employed in construction and development of the data center. Upon completion 100-200 people will be permanently employed at the center.

(Editing by Dan Whitcomb and Peter Bohan)