Earlier quoted context omitted.
Their leadership has no vision. They don't know what to build, where they're going, or what problems they need to solve.. So they encourage these random projects hoping one of their employees will have a vision for them. So the organization just flails around hoping to win the lottery. Each new project is a new lottery ticket.. saving the leadership from making any hard decisions.
Google is basically a startup builder. And a really good one. How many companies manage to stay so innovative after having found their rainmaker product? However, they should probably sell their successful startups instead of killing them. But I guess they don’t need the money.
Also, would enough Googlers be willing to spin out from "the mothership" to go work for a spinoff that likely couldn't afford the same benefits package?
(And this is to say nothing of the fact that most of Google's software is written atop Google's internal software infrastructure, which generally cannot be ported out of the company. It just won't work outside the ecosystem of services it assumes exist).