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Alphabet holding structure first and foremost is there to increase stock price. It’s specifically structured to separate and downsize risks. One of the investor
by vl 6y ago
Alphabet holding structure first and foremost is there to increase stock price. It’s specifically structured to separate and downsize risks. One of the investor’s concern is uncontrollable pouring of money into moonshots. Making them separate companies creates some transparency and illusion of accountability.
- TuringNYC 6y ago>> Making them separate companies creates some transparency and illusion of accountability. I would not be so dismissive of it -- there are good reasons to have separate companies. You can offload some risk by getting co-venture (as in Waymo's case.) More importantly, you can have other critical partners be co-invested with skin in the game. In the case of Waymo, if I were trying to raise funding, I might get money from P&C Insurance companies -- it could help align great future partnerships that make 1+1=3.