Dive Brief:
- On Monday, Google officially came under its new parent company, Alphabet and traded as such, but still under the stock symbol GOOG.
- Google will focus on core Internet-related businesses while its research projects will operate as separate subsidiaries.
- The company said in August that it was restructuring in order to better manage its various businesses.
Dive Insight:
Analysts say the new structure will provide better transparency in some of Google's business units.
Prior to the reorganization, everything fell under the Google corporate umbrella. Now Google X, the research arm, will become its own business, as will Capital and Ventures, which will concentrate on funding startups.
"This is a big deal because if they can accomplish what they're looking to… this puts in place a future operating model for a large company to truly innovate," Patrick Moorhead, an analyst with Moor Insights & Strategy told ComputerWorld. "I think this puts a meaningful separation between businesses generating cash, and research and science projects. For the company, it could mean they can keep driving profits today and invest in the far future."
