Google’s search advertising business is hugely profitable, in
effect a monopoly in that arena. Photo: Reuters
Google Inc,the $US445 billion search advertising giant,shocked the corporate world on Tuesday morning when it announced a sweeping overhaul of its business and a (rather-nauseating) re-brand of its corporate entity.
On the stock exchange,what was once Google will henceforth be known as Alphabet Google,the ting you use to search for stuff,will be still be known as Google,but is now one of Alphabet's many businesses.
Google co-founders Larry Page and Sergey Brin.
"We've long believed that over time companies tend to get comfortable doing the same thing,,just making incremental changes.But in the technology industry,where revolutionary ideas drive the next big growth ares,you need to be a bit uncomfortable to stay relevant, "Larry Page Google co-founder and now Alphabet CEO said in a blog post.
Remember,Google
doesn't pay any dividends.The huge profits it mints in search are funneled back into promising areas that seem to keep its two
co-founders,Larry Page and Sergey Brin ,interested.
Separating these activities going forward should give investors more clarity on how Google search business is going, and how much money the business are losing.And investors seem to like that ideas,with shares up by 6per cent in after-hours trading.
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