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As for real products, at Google's current size it has become near impossible to launch new ones worth their time. Google currently has a quarterly revenue of $
by iteratethis 2y ago
As for real products, at Google's current size it has become near impossible to launch new ones worth their time.
Google currently has a quarterly revenue of $70-80B.
Imagine an internal team launches a new product to collect $100M in quarterly revenue. An earth-shattering success for any entrepreneur.
For Google...it doesn't even move the needle. Does nothing for stock, it's not strategic, and may become a liability later on.
You would need to launch a multi-billion new sub business for it to be of any interest to Google, which is impossibly hard.
- nextos 2y agoThis is why they should go full conglomerate and spin off companies all the time. Otherwise, with those expectations, it's impossible to build something good and impactful.
- kelnos 2y agoI really thought this was what the plan would be when Alphabet was formed.
- chadcatlett 2y agoGoogle X/X Development LLC is the Google incubator for possible spin-offs as far as I can tell.
- nh2 2y agoWhat would be the benefit of doing it spun-off vs. in-house when it's still owned by the same company and making the same amount of money?
- nextos 2y agoLess red tape, more freedom to operate. If done inside a conglomerate, it can be the best of both worlds. Access to Google tech and funding, but free from rigid corporate hierarchies, at least at the beginning.
- lmm 2y agoSpinning it off limits the downside/risk to the parent company. Basket of options worth more than an option on a basket and all that.
- johannes1234321 2y ago... which is the reason why many large corporations acquire products: only once they are big enough, they are relevant. Issue for Google: They have to be carful for Anti-Trust not blocking the acquisition for some reason.