Google

[ISUCyclones2015]

I am still processing on all the reasons why they would do this but I found the announcement from Google today quite interesting. Your thoughts?

Announcement: https://abc.xyz/

Wired Article: http://www.wired.com/2015/08/new-company-called-alphabet-owns-google/

 

[BoxsterCy]

Just so the thread doesn't die at one post:

Barney Google!

 

[NWICY]

Sounds like the 2 guys that run google are bored and want to spend more time doing creative, innovative stuff. Spun stuff off to keep track of the dollars. That's my guess from reading it. But I'm no tech guru so who knows.

 

[1Nation]

I'm not an accountant but I imagine it's all about taxes, it's always about money. Especially at Google. One of their more ambitious companies struggles it's a major write off for Alphabet. Currently operating under Google, even if a "division" struggles, in all Google did well so there is no benefit to that struggle...or to being "ambitious" as they've put it.

 

[3TrueFans]

I don't think it means anything, just separating the core businesses, Google search, Android, Youtube etc. from the other "side" stuff Google is developing and will develop in the future like self driving cars and pharmaceuticals.

 

[SCNCY]

The way I understand it, they are putting all of their services that make profit and revenue under one company, and putting all of their research and development under the other company. From an article I read earlier, investors/wall street have been concerned with costs getting out of control and getting no or little return on some of that R&D. They just recently hired a new CFO who is supposedly there to help control costs. The stock is up 20% since the announcement of the new CFO which the street things highly of. As someone already said , the founders want to create cool things, but investors want money and value.