today in this of new news about Google spells out focus on future with Alphabet. As far as bids for immortality go, it must already be the most lucrative in history. Larry Page’s restructuring of Google under a new umbrella called Alphabet – in a way designed to ensure both its longevity and his own – delivered an instant $28bn boost to the company’s stock market value.
As Wall Street and Silicon Valley processed what was a genuine shock to an industry long accustomed to leaks, analysts and pundits grasped for deeper meaning in the dull details of a corporate reshuffle.
Even before they are told how much the company has been spending on drones and hi-tech contact lenses, shareholders effectively celebrated the prospect of having a better idea of what is going on at their company. Under Alphabet, businesses that were valued negatively as part of Google are worth closer to zero, according to Wall Street, so the shares jumped.
The move was announced to investors, in Google’s traditional style, as a fait accompli. But while Page and other senior executives exercised the special power their shares hold, the age of Alphabet will be seen in some quarters as a concession to the market.
Until recently, Google’s shares were flat-lining while the wider technology sector boomed. Disquiet on Wall Street at Page’s apparent focus on sci-fi projects was growing, as analysts and investors questioned how the company would remain at the heart of the consumer internet.
At the same time, the company was suffering a brain drain. Amid the sluggish share price performance, some of Google brightest minds were being tempted by start-ups.
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