Cramer with Google's Eric Schmidt... $750 (GOOG, MSFT

On today’s Olympic-shortened MAD MONEY break now at 1:30 PM on CNBC, Jim Cramer interviewed Eric Schmidt, Chairman & CEO of Google Inc. (NASDAQ: GOOG).  Cramer said that in July it got hit over Wall Street took its quarter as bad.  Cramer said he’s calling it..."Google is a steal at $500" at what he said is 20-times his forward earnings estimates.  He had many questions but said he is asking questions today to find out what he needs in an in-person interview live on CNBC…. As you read the comments below, please be advised that these are merely paraphrased comments from the CNBC VIDEO interview rather than formal quotes…..

CRAMER… "At $500, what about a SPLIT?"

• SCHMIDT.. We aren’t going to split the stock (for foreseeable future)…

CRAMER: ON GUIDANCE??

• SCHMIDT: We don’t provide guidance.  We don’t want to get in theway of running the business and guidance could limit that if they givequarterly lines.

CRAMER: With $600 Billion in advertising, can you capture 10% eventually?

• SCHMIDT: We won’t get 100% of online ad spending (but can capture more)

CRAMER: What about mobile computing???

• SCHMIDT: We can make more money on mobile advertising over time… not now, but over time.

CRAMER: In competing against content players and threats to content makers?

• SCHMIDT: Google is maintaining that separation and thy want to keep that

CRAMER: On Monday’s out age of GMAIL?

• SCHMIDT: That was just a screw up….

CRAMER: With domestic growth at 26% this quarter, is it tapped out?

• SCHMIDT:  Some would be happy with that… don’t know about global economy… Schmidt didn’t seem concerned there…

CRAMER: Why not advertise on homepage and how much would it be worth?

• SCHMIDT: Could be worth "billions"… We don’t because people wouldn’t like it.

CRAMER: On global vs. U.S.

• SCHMIDT: The world is a big place and the global versus US will likely go to 56/35 instead of 52/48….

BEFORE CRAMER STARTED WITH SCHMIDT, GOOGLE STOCK WAS AROUND $498… At 1:42 PM EST shares are up over $500 and briefly went over $502………

CRAMER:  then came back after a break and said that he would go back to that $750 target.

CRAMER:  As far not being able to get bigger?

• SCHMIDT:  In addressing that S-Curve slowdown you have to keepaddressing new businesses and opportunities.  They ill presentthemselves as tech evolves

CRAMER:  At a certain place, Cramer worries that the US Government will come down on them for growing too large???

• SCHMIDT: They have already discussed it and won’t act asMicrosoft (NASDAQ: MSFT) did.  Google also doesn’t trap the end userand refers people online to competitors.  Partners are free to workwith whomever else they wish….

CRAMER: On addressing the New York Times as far as dealing with them….

• SCHMIDT: We have a deal with them and they send readers to the NYT site… they also have an ad-deal with them

CRAMER: ON YOUTUBE….?

• SCHMIDT: There is an unbelievable amount of exponential minutesin video… we haven’t figured outy the online video model yet…traditional TV model is 50-years old and they are trying many newthings there… CRAMER ASKED ABOUT YOUTUBE HITTING BOTTOM LINE… yescan, but they want to eventually make money on it…

CRAMER (LAST QUESTION, sort of)… ON ANDROID and mobile?  Where is it, how big can it be?

• SCHMIDT:  won’t commit on time other than end of year and won’t comment on size….. 
   

CRAMER: SHOULD MICROSOFT WORRY ABOUT CLOUD COMPUTING???

• SCHMIDT:   I NEVER WORRY ABOUT MICROSOFT!!!!!!

As a reminder, this is a paraphrasing and only noted issues that might matter to investors

Jon C. Ogg
August 13, 2008