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Here's why I think Google's transformation into Alphabet was not a wise one.

As Google cofounder Larry Page, now CEO of the holding company Alphabet, that will have as its main subsidiary Google, the search company, said earlier today:

>As Sergey and I wrote in the original founders letter 11 years ago, “Google is not a conventional company. We do not intend to become one.” As part of that, we also said that you could expect us to make “smaller bets in areas that might seem very speculative or even strange when compared to our current businesses.” From the start, we’ve always strived to do more, and to do important and meaningful things with the resources we have.

Well, if Google wants to keep spending investor money into "speculative" areas, what could be dumber than reporting its financials as "Google: hugely profitable" and "other random stuff: huge cash drain"? It will just make investors all the more sensitive to the fact that Google's search business is basically what makes money, and everything else is - for now, at least - a huge cash drain.

Raising awareness to Google's - oops, Alphabet's - business unit's individual financials will attract attention of the likes of Carl Icahn, who's raided Ebay in the past, and who'll engage in open challenging of Page and Brin's capital allocation decisions. It will definitely not compensate for the advantages of having Sundar Pichai take on greater responsibilities as Google chief, etc.

Not at all a wise move.

Why do they care what Carl Icahn or any other investor thinks? Page and Brin control the voting shares. The biggest risk is bad PR or a public perception of failure, not any substantive challenge.

Investors already thought/knew this. Listen to any of the earnings calls from the last year and you'll see what I mean.

  Its actually very wise move. Now they can ipo out other businesses to get capital investments for something like Google Fiber without diluting the control they have over Google. 
   This is an extremely good move the more I think about it. They will retain control of the  main company but sell shares or give stock options to get talent and capital.

As an investor in Google, I am pleased that they will continue to try to create new things, and not just cash in on search, etc. (Well, as long as they don't pull another Reader.)

On the plus side (so to speak), if G+ had been factored out maybe the forcible integration would have been slowed.

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