One thing I've heard is that this would help them in terms of taxes, allowing them to write off projects that don't make money, although I'm not entirely clear on how Alphabet would accomplish this.
That would be no joke if that was a reason to do it.
The first thing I thought of involved the regulations and other troubles that Google was facing in the EU. Those troubles seemed to summarize as "Google is too big and is taking advantage of its large market share". Alphabet looks like it'll fracture the google businesses more, which might help reduce the issues they're facing in the EU.
Well, Google is already quite fractured in the EU - it has something like 20 subsidiaries, one in most EU countries[0] ?
That is also a common (mandatory?) setup, for multinational companies to have a local subsidiary in every country where they operate. I guess institutions like the EU must be handle that and focus on the activity independently of the fine details of the company structure, so that the restructuring would not really help or hinder.
>> The first thing I thought of involved the regulations and other troubles that Google was facing in the EU. Those troubles seemed to summarize as "Google is too big and is taking advantage of its large market share". Alphabet looks like it'll fracture the google businesses more, which might help reduce the issues they're facing in the EU.
> Well, Google is already quite fractured in the EU - it has something like 20 subsidiaries, one in most EU countries
Seperation at the marketing end for ad services, or for purposes of tax optimisation, does not really alleviate any of the antitrust concerns. It's the services that matter. Google's main ad business and search being in the same company for example.
So the current EU subsidiaries would not have an effect on the EU investigation, but this current plan might.
IANAL, but it seems unlikely. The Alphabet move doesn't appear to be splitting out the components the EU regulators appear to care about (search, ads, maps) from each other. If regulators are concerned about the effects of personal information consolidation, that's not changing.
Alphabet is only missing a startup accelerator, why wouldn't Sergey and Larry now focus on earlier stage themselves? All those ambitious things can be achieved better by a lot of startupa competing in parallel.
Are we sure it isn't April 1st? Are we sure this press release isn't a hoax?
This is so wild I'm having trouble believing any of it.