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The article explains it, but it's not 100% clear why the extra step was needed.. "Google co-founder Larry Page announced Alphabet two years ago to foster new bu
by mtrpcic 9y ago
The article explains it, but it's not 100% clear why the extra step was needed.. "Google co-founder Larry Page announced Alphabet two years ago to foster new businesses that operate independently from Google. Technically, however, those units, called the “Other Bets,” were still subsidiaries of Google." With this new change, XXVI Holdings will hold the equity for all child companies, rather than Google still being the owner.
- zrail 9y agoUntil now the only Alphabet subsidiary was Google Inc. The other bets were still Google Inc subsidiaries. This move brings them up a level and separates them from Google.
- BurningFrog 9y agoLooks like a pretty clean refactoring to me!
- akvadrako 9y agoI don't see why they don't just put all their subsidiaries under Alphabet. What is the purpose of Alphabet if not a holding company?
- zrail 9y agoUncertain. XXVI could be just a vehicle for accomplishing that eventually. For now it probably just simplifies the transaction.
- digitalzombie 9y agoIt's in the article. Alphabet owns google and the other bets. If one of the LLC under Alphabet get sued it doesn't effect the other LLC (bets or Google).
- akvadrako 9y agoThat doesn't explain anything.
- stingrae 9y agoPerhaps this makes it cleaner for Alphabet to sell equity in the other bets, as they have in Verily (https://www.recode.net/2017/1/26/14399042/verily-health-tech-800-million-investment-temasek https://www.recode.net/2017/1/26/14399042/verily-health-tech...).