PHONE FIGHT! APPLE ' S SPAT WITH GOOGLE IS GETTING PERSONAL
Eric E. Schmidt
Three years ago  Eric E. Schmidt  the chief executive of Google  jogged onto a San Francisco stage to shake hands with Steve Jobs  Apple's co-founder  to help him unveil a transformational wonder gadget -- the iPhone -- before throngs of journalists and adoring fans at the annual MacWorld Expo.
 Google and Apple had worked together to bring Google's search and mapping services to the iPhone  the executives told the audience  and Schmidt joked that the collaboration was so close that the two men should simply merge their companies and call them "AppleGoo."
 "Steve  my congratulations to you " Schmidt told his corporate ally. "This product is going to be hot." Jobs acknowledged the compliment with an ear-to-ear smile.
 Today  such warmth is in short supply. Jobs  Schmidt and their companies are now engaged in a gritty battle royale over the future and shape of mobile computing and cell phones  with implications that are reverberating across the digital landscape.
 In a statement  Schmidt concurred. "I continue to believe  as many do  that Steve Jobs is the best CEO in the world today  and I admire Apple and Steve enormously " he wrote.
 Schmidt hasn't shied away from taking public swipes at Apple  either. In January at the World Economic Forum  when asked what he thought of Apple's new iPad  due to go on sale early next month  he joked to reporters: "You might want to tell me the difference between a large phone and a tablet."
 Although Jobs and Schmidt both began working in Silicon Valley in the late 1970s  their paths rarely crossed. But by 2001  with Jobs back at Apple and Schmidt running Google  they shared a singular mission: limiting Microsoft's hegemony to the personal computer and ensuring that Bill Gates didn't dominate the frontier of online services and mobile devices.
 both began working in Silicon Valley in the late 1970s  their paths rarely crossed. But by 2001  with Jobs back at Apple and Schmidt running Google  they shared a singular mission: limiting Microsoft's hegemony to the personal computer and ensuring that Bill Gates didn't dominate the frontier of online services and mobile devices.
 When Schmidt was invited to join Apple's board in 2006  he and Jobs lavished praise on each other.
 By all accounts  Schmidt and Jobs were never close friends. But they dined together on several occasions  according to a former associate of Schmidt's  and Jobs never hesitated to call Schmidt directly to voice his opinions. Schmidt  several friends say  relished his position on Apple's board and the proximity it gave him to one of the most famous figures in American business.
 As tensions mounted between Schmidt and Jobs  their infighting became more public. When Google tried to get its voice mail management program  Google Voice  onto the iPhone  Apple blocked the effort last July  citing privacy concerns. Then  last August  Schmidt stepped down from Apple's board  prompted in part by regulatory concerns over ties between the companies but also because Apple said his position had become untenable.
 When Jobs announced Schmidt's departure from the board  he noted that with Android and plans for a computer operating system  Google was "unfortunately" entering more of Apple's "core business."
 While Apple conducted due diligence on the deal  AdMob agreed to a 45-day "no shop" provision  a routine clause that prevented the startup from offering itself for sale to others  according to three people briefed on the negotiations. But after Apple inexplicably let 45 days pass without consummating its offer  Google pounced. Their interest piqued by Apple's pursuit of the start-up  Schmidt  along with Page  Brin and other Google executives  began intensely courting Omar Hamoui  AdMob's young chief executive. AdMob  the Google guys argued  belonged in their corporate family because Google -- unlike Apple -- was an old pro in advertising. They also promised that AdMob employees would be able to cash out stock options sooner than Apple's deal would have allowed. It also didn't hurt that Google was willing to pay a 25 percent premium over Apple's offer. Three days after the no-shop provision expired  Google agreed to buy AdMob -- putting a whopping $750 million price tag on a four-year-old company with modest revenue. Jilted and angry  Jobs speculated that AdMob might have violated its legal obligations  with help from Google  according to two people briefed on the fallout from the negotiations.
 Campbell  a former college football coach and the former chief executive of Intuit  has played pivotal roles at Google. He sat in on high-level management meetings  counseled Schmidt individually in private sessions every other week  helped to establish the company's management structure  and had a hand in smoothing over the initially turbulent relationship between Schmidt and Google's founders.
 While Campbell has tried to be a diplomat and smooth over the problems between Jobs and Schmidt  the task hasn't been easy. Campbell declined to comment for this article  but people briefed on the matter say that throughout last fall  Jobs and Schmidt each lobbied Campbell to sever his connection with the other's company  at times even giving him ultimatums to do so.
Three years ago  [TGT]jogged onto a San Francisco stage to shake hands with Steve Jobs  Apple's co-founder  to help [TGT] unveil a transformational wonder gadget -- the iPhone -- before throngs of journalists and adoring fans at the annual MacWorld Expo.
 Google and Apple had worked together to bring Google's search and mapping services to the iPhone  the executives told the audience  and [TGT] joked that the collaboration was so close that the two men should simply merge their companies and call them "AppleGoo."
 "Steve  my congratulations to you " [TGT] told [TGT] corporate ally. "This product is going to be hot." Jobs acknowledged the compliment with an ear-to-ear smile.
 Today  such warmth is in short supply. Jobs  Schmidt and their companies are now engaged in a gritty battle royale over the future and shape of mobile computing and cell phones  with implications that are reverberating across the digital landscape.
 In a statement  [TGT] concurred. "I continue to believe  as many do  that Steve Jobs is the best CEO in the world today  and I admire Apple and Steve enormously " [TGT] wrote.
 [TGT] hasn't shied away from taking public swipes at Apple  either. In January at the World Economic Forum  when asked what [TGT] thought of Apple's new iPad  due to go on sale early next month  [TGT] joked to reporters: "You might want to tell me the difference between a large phone and a tablet."
 Although Jobs and [TGT] both began working in Silicon Valley in the late 1970s  their paths rarely crossed. But by 2001  with Jobs back at Apple and [TGT] running Google  they shared a singular mission: limiting Microsoft's hegemony to the personal computer and ensuring that Bill Gates didn't dominate the frontier of online services and mobile devices.
 both began working in Silicon Valley in the late 1970s  their paths rarely crossed. But by 2001  with Jobs back at Apple and [TGT] running Google  they shared a singular mission: limiting Microsoft's hegemony to the personal computer and ensuring that Bill Gates didn't dominate the frontier of online services and mobile devices.
 When [TGT] was invited to join Apple's board in 2006  [TGT] and Jobs lavished praise on each other.
 By all accounts  [TGT] and Jobs were never close friends. But they dined together on several occasions  according to a former associate of [TGT]'s  and Jobs never hesitated to call [TGT] directly to voice [TGT] opinions. [TGT]several friends say  relished [TGT] position on Apple's board and the proximity it gave [TGT] to one of the most famous figures in American business.
 As tensions mounted between [TGT] and Jobs  their infighting became more public. When Google tried to get its voice mail management program  Google Voice  onto the iPhone  Apple blocked the effort last July  citing privacy concerns. Then  last August  [TGT] stepped down from Apple's board  prompted in part by regulatory concerns over ties between the companies but also because Apple said [TGT] position had become untenable.
 When Jobs announced [TGT]'s departure from the board  [TGT] noted that with Android and plans for a computer operating system  Google was "unfortunately" entering more of Apple's "core business."
 While Apple conducted due diligence on the deal  AdMob agreed to a 45-day "no shop" provision  a routine clause that prevented the startup from offering itself for sale to others  according to three people briefed on the negotiations. But after Apple inexplicably let 45 days pass without consummating its offer  Google pounced. Their interest piqued by Apple's pursuit of the start-up  Schmidt  along with Page  Brin and other Google executives  began intensely courting Omar Hamoui  AdMob's young chief executive. AdMob  the Google guys argued  belonged in their corporate family because Google -- unlike Apple -- was an old pro in advertising. They also promised that AdMob employees would be able to cash out stock options sooner than Apple's deal would have allowed. It also didn't hurt that Google was willing to pay a 25 percent premium over Apple's offer. Three days after the no-shop provision expired  Google agreed to buy AdMob -- putting a whopping $750 million price tag on a four-year-old company with modest revenue. Jilted and angry  Jobs speculated that AdMob might have violated its legal obligations  with help from Google  according to two people briefed on the fallout from the negotiations.
 Campbell  a former college football coach and the former chief executive of Intuit  has played pivotal roles at Google. He sat in on high-level management meetings  counseled [TGT] individually in private sessions every other week  helped to establish the company's management structure  and had a hand in smoothing over the initially turbulent relationship between [TGT] and Google's founders.
 While Campbell has tried to be a diplomat and smooth over the problems between Jobs and Schmidt  the task hasn't been easy. Campbell declined to comment for this article  but people briefed on the matter say that throughout last fall  Jobs and [TGT] each lobbied Campbell to sever his connection with the other's company  at times even giving him ultimatums to do so.