Essay The Core Advertising And Search Business Of Google

2298 Words May 20th, 2016 10 Pages
In August of 2015, the company formerly known as Google, restructured itself by creating a holding company called Alphabet and placing the Google search company and its other initiatives as subsidiaries under this new company. The initial announcement that Google was restructuring led to many questions as to why the company decided to undergo such a major change. The general consensus among business professionals was that the company wanted to make its various businesses clearer to investors. In essence, the core advertising and search business of Google would now be separate from its other non advertising businesses such as Calico, Google X, Fiber, Nest, etc. After the restructuring Google retained the same breakdown of shares the company had before, Class A and C stocks continued to be traded under the GOOGL and GOOG tickers respectively (Brown, 2015). The restructuring appeared to resonate with investors and proof of this was seen on the first day as the newly formed, Alphabet’s stock rose from $626.91 to $632.35. This trend continued and in less than a year the stock sits at $718.90 and has hit a high of $789.87 ("GOOG - Stock quote for Alphabet Inc - MSN Money," 2016).
Alphabet Inc, previously known as Google is an internet information provider under the technology sector and as of 2016 the company has 61,814 employees ("GOOG - Stock quote for Alphabet Inc - MSN Money," 2016). As the umbrella company, Alphabet Inc., through its subsidiaries, provides online advertising…

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