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What they are really saying with all of this is..."We are moving all of our profitable businesses under one umbrella that will be reported separately, and putti
by downandout 11y ago
What they are really saying with all of this is..."We are moving all of our profitable businesses under one umbrella that will be reported separately, and putting all of our money-losing businesses under another, in hopes that investors will basically ignore the unprofitable stuff and only focus on our profitable businesses.". Apparently the moonshots are diluting results from the mainstays, and they want a higher stock price, so they are going to report them separately. I'm not sure why they have to form a whole new corporate structure for that though; they could just break out the numbers in their reports.
- Arnt 11y agoOr they're saying "so that the adults who supervise moneymaking won't bother the moonshot meetings at abc.xyz and spoil the fun with all their blather about next quarter's earnings".
- kennethcwilbur 11y agoOr they're saying "We're personally tired of the boring but profitable business of selling ads. Let's replace ourselves and focus on the cool stuff."
- pknerd 11y agoOr they're saying "Let's getrid of 'Don't be evil' thing and do something evil with different name"
- dspeyer 11y agoOr so that once there's good news from a spinoff, they'll be able to announce it. A small profit there would get lost in the bigger revenue streams under the old model. Remember how the media kept running "How long can Google afford to subsidize Youtube?" stories well after Youtube turned profitable?