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I honestly don't understand why the stock price would increase with this. It seems to me that all they did was add a layer of bureaucracy (or just shuffled it a
by RexRollman 11y ago
I honestly don't understand why the stock price would increase with this. It seems to me that all they did was add a layer of bureaucracy (or just shuffled it around).
- jonlucc 11y agoI assume it signals that they will be investing more heavily in the non-Google portions of their umbrella. It also signals that they are going to keep Google as a very ad-focused company in their banner.
- irishcoffee 11y agoThe closest thing I can come up with is that the're modeling after companies like this: http://www.textron.com/ http://www.textron.com/ Textron owns Bell Helicoptor, and EZ:GO Golf Cart company, among ~12 others, but the stock is all Textron stock. I guess its kind of like internal diversification. I realize Google is a decently unique company, so I'm not sure exactly why they did what they did, but the model they jumped to seems common enough.
- encoderer 11y agoOr, Berkshire Hathaway
- nolite 11y agoIt gives the market more financial transparency into how the core business is doing, w/o merging in the effects of these other projects. More transparency means more accurate pricing, and thus a more reliable investment
- thesimpsons1022 11y agoI heard the opposite. That they won't have to disclose how google is doing if they don't want. Just as Amazon doesn't have to release AWS numbers.
- Const-me 11y agoProbably because stock traders smell creative accounting here. Companies usually do that to minimize the taxes they pay, hence maximizing their shareholders’ profits.