Google is sitting on a pile of cash while Yahoo! buys anything with Web 2.0 after its name. What are they doing and what will they be doing? CNN takes a guess.

As such, Bill Tancer, general manager of global research with Hitwise, an Internet research firm, thinks Google needs to make more deals in social networking. He said Google’s biggest threat will not come from search engines like Yahoo!, Microsoft’s MSN or IAC/Interactive’s Ask.com but from MySpace, the social networking site owned by News Corp.

“Google’s core business is helping people consume information on the Web. As we see Google grow out its content offerings such as finance and maps, I think they’d have to make a serious play into more social and user-generated content,” he said.

Not to toot a friends horn, but I think iBegin is already doing that, though it currently relies on Google Map API’s and whatnot. It should be interesting to see what Google does, as I think they have made some serious mistakes lately that have some people scratching their heads about the direction Google is going to go over the next while.

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