Schmidt: Google does not want to buy Twitter right now

The ongoing guess work and dead reckoning over whether the search giant Google will soon buy micro-blogging site Twitter was ended by Google CEO Eric Schmidt on Saturday. On PBS's Charlie Rose show, Schmidt made it clear that they are "unlikely to buy anything in the short term".

In the interview journalist Charlie Rose asked, "People are excited these days, the lost several months about Twitter. Does Google want to buy Twitter?"

Schmidt answered, "I shouldn't talk about specific acquisitions. We're unlikely to buy anything in the short term partly because I think prices are still high. And it's unfortunate I think we're in the middle of a cycle. Google is generating a lot of cash. And so we keep that cash in extremely secure banks."

"And we'll wait that out. From our perspective, I think the YouTube application and the DoubleClick acquisition which are the two large ones we did last year and the year before, have been phenomenally successful," Schmidt added.

The rumors that Google was planning to buy Twitter surfaced earlier in the week, when Schmidt dubbed Twitter as a "poor man's" e-mail system, in an on-stage chat at the Morgan Stanley Technology Conference in San Francisco.

He said, "They have aspects of an e-mail system, but they do not have a full offering." While boasting the success of Google's instant messaging system at the conference, Schmidt, "Twitter's success is wonderful and it shows you that there are many, many ways to reach and communicate, especially if you are willing to do so publicly."

He expressed that "Google will be ready to make a deal (with Twitter) when the price is right. The good news is we have lots of capital. The bad news is we're still trying to get everybody into the model that we really want in terms of M&A. And I think it'll start soon, but it's pretty inactive right now."

Google may have hidden desire to buy Twitter, but the search giant should not forget that Twitter turned down a take over offer from Facebook reportedly worth $500 million.