Google decides against newspaper acquisition

Internet search engine giant Google Inc had toyed with the idea of acquiring a newspaper, but decided against it, Google's chief executive and chairman Eric Schmidt told Financial Times in an interview.

There had earlier been speculation that cash-rich Google could take advantage of a dip in advertising revenues to buy out struggling news organizations, with the New York Times seen as a potential target.

Schmidt said potential targets were either too expensive or came with too many liabilities.

A newspaper acquisition is also unlikely because Google is "trying to avoid crossing the line between technology and content," the paper quoted Schmidt as saying. ''We are trying to stay on our side of the line."