Actually reading the first few paragraphs of the form 8(K) was more illuminating than the blogpost. "Under the new operating structure, its main Google business will include search, ads, maps, apps, YouTube and Android and the related technical infrastructure (the “Google business”)" "In connection with the new operating structure and upon completion of the Alphabet Merger (as defined below), Larry Page will become t…
I find it also interesting the non - Google companies: Businesses such as Calico, Nest, and Fiber, as well as its investing arms, such as Google Ventures and Google Capital, and incubator projects, such as Google X, will be managed separately from the Google business. Fiber is the most notable to me - seems they see this as more than an experiment and are looking to expand. YouTube not separating is an interesting on…
My guess is this serves 3 benefits:
1 - Less turf wars.
2 - Better visibility to investors on where the money is.
3 - Ability to spin off pieces as needed.
Many companies resist this type of visibility because they don't want a Carl Icahn to come in and demand a spinoff. The share structure of Google/Alphabet precludes this from happening.