Google morphs into Alphabet Inc in bid to highlight new ventures

[ElixantTechnology]

[URLnf="http://ca.reuters.com/article/businessNews/idCAKCN0QF26920150810?pageNumber=2&virtualBrandChannel=0"]http://ca.reuters.com/article/businessNews/idCAKCN0QF26920150810?pageNumber=2&virtualBrandChannel=0[/URLnf]

Google Inc GOOGL.O announced a major shake-up of its operating structure on Monday, creating a holding company called Alphabet which will contain subsidiaries to separate its core web advertising business from newer ventures like driverless cars.

The move appeared to be an attempt to let the search engine giant focus on its more creative and ambitious projects, while investors cheered the potential for more financial disclosures of its disparate business segments.

"It suggests that in all likelihood, Google is not going to slow the pace of their experimental processes like self driving cars," said Michael Yoshikami, head of Destination Wealth Management which has $1.5 billion under management.

The surprise news sent shares of Google up as much as 7 percent to $708 in after hours trading.

Credit ~ Reuters

What is your opinion on this shift?

 

[elcidofaguy]

Very interesting! Google as a brand will not be going any where and I do think it makes sense to create a holding company given the many areas of business which falls outside of the very familiar search engine provider... In addition it will probably get Google out of hot water with regards to tax issues in many countries such as in the EURO zone... and further makes accountability and management easier internally...

 

[media89]

Google wants to be the next Skynet, they want to control everything, get their hands on profitable niches.