I don't know much about trading, but look at that "after hours" spike! http://postimg.org/image/ho5ecyr99/
EDIT: All google subsidiaries are now subsidiaries of a conglomerated called Alphabet. Google is a subsidiary too. Google stock will now be Alphabet stock.
The big news is that Larry and Sergey are stepping back into a more Warren and Charlie kind of role, and Sundar Pichai is taking over as CEO of Google.
My question is, what does "slimmed down" Google mean?
It means Google minus all the parts that are now their own direct subsidiaries of Alphabet.
Which, previously, were all part of Google. Hence, "slimmed down".
It's going to remove the 'is this a thing Google should be getting in to?' question when evaling ventures/acquisitions.
It looks like they're taking all the experimental research stuff out of Google and making them direct subsidiaries of Alphabet instead, particularly projects that aren't directly related to the Internet.
The article talked about Life Sciences and Calico, and I have to wonder if other stuff like the self-driving cars are going to become direct Alphabet subsidiaries as well (then again, maybe not: I assume the self-driving cars are tied closely to Google Maps).
A more focused company that's moving to the top level of this hierarchy is Nest.
Presumably they hope that something outside of the new google division will blow up and make the divisions a bit less lopsided.
Hopefully less likely to run afoul of antitrust regulation.
I have no reason to suspect this, that's just how I usually interpret wording like that.
> The European parliament has approved a motion calling for tougher regulation of internet search, including suggesting breaking up Google as a solution to its dominance in Europe.
That certainly wasn't a done deal nor even agreed that's what the commission would really aim for, but the heat was mounting and Google's move cut them short just in case.
IOW, Nest reports to Alphabet, and so does Google. Both are aligned, but separate.
Look at Blackberry, they had an internal project working against the rest of the company (namely Android on Blackberry hardware) that could, had it been allowed, saved the company. Instead Blackberry are either going to be purchased OR go bankrupt.
Honestly internal competition is an argument for doing something like this, not against it.
The company appears to still be alive and still has a few billion dollars in the bank despite now years of people saying that they're going bankrupt. I wish I was 'going bankrupt' like Blackberry.
Blackberry seems to have secured a solid niche position in mobile security, despite losing the majority of their mobile phone business to more end-consumer electronics driven companies (primarily samsung & apple).
Google seems to like competing against themselves, so I'm not sure that's something that they are particularly worried about.
So long as Sergey and Larry (& Co.) keep from micro-managing, I think this structure will be enormously beneficial. I can't see how someone running Google's web properties would be able to move quickly when also having a hands-on responsibility for developing a self-driving car and a glucose-sensing contact lens.
It's a twist on "adult supervision". They have put an adult in charge of making money. Meanwhile, Larry and Sergey get to keep playing around with all sorts of exotic projects that may or may not eventually make money.
Hm. Judging by downvotes, some folks here liked the fact that he killed XMPP federation of Google Talk and didn't propose Hangouts as an alternative open protocol. What an achievement.