Tuesday, 11 August 2015

G is for Google and T for Transparency

A yesterday blog post by Google CEO Larry Page disclosed the company’s intention to reorganize through a series of mergers ultimately forming the Alphabet Holding Company. The goal is to separate Google´s core Internet business (Search, Display, Maps, Android, YouTube) from the research and investment businesses:

    * Calico (life-extension biotech research)
    * Nest (maker of the Nest Thermostat and other smart home products)
    * Fiber (high-speed Internet service)
    * Ventures and Capital (early and growth-stage investing)
    * X lab (“moonshot” research incubator that includes projects such as self-driving cars and delivery drones)

This new structure will increase transparency as Google will now be in the position to report their core advertising products separately from their research divisions for the first time, giving investors a clear view of margins and profitability.

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