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Google's restructuring will let new ventures shine

Katherine Noyes | Aug. 11, 2015
Google may be best known for its ubiquitous search engine, but it has long been associated with seemingly whimsical ventures into areas as diverse as self-driving cars, drones and human aging. On Monday, it took a step toward making those "side" ventures more legitimate -- and more transparent.

At the same time, the move could limit liability and government reach, Enderle said, such as when Google is faced with fines over its search practices.

"With most of the anticipated fines coming in at search, this could allow Google to bankrupt the search business or argue for a smaller fine tied to that now-smaller business," he explained.

It could also contain requests for information to the specific business that retains it, and not the entire firm, he added.

In addition, "they could incorporate some of the businesses in regions with better tax and regulatory structures, though pulling that off might be more difficult than it would be worth," Enderle said.

Last but not least, the move will likely help with executive retention, Enderle said.

"Because there are far more top executive spots to fill, fewer will have to leave Google to become CEOs," he said. "They now can leave acquisitions largely intact like Dell does, so they don't bleed these executives after an acquisition."

 

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