Al­pha­bet changes re­sults for­mat to sep­a­rate Google

The Pak Banker - - COMPANIES/BOSS -

SAN FRAN­CISCO: Hop­ing to pro­vide greater clar­ity into the per­for­mance of its many hold­ings, Al­pha­bet Inc. said it would re­port fi­nan­cial re­sults un­der two seg­ments, Google and "Other Bets", when it re­leases fourth-quar­ter earn­ings on Mon­day. Un­der Google, Al­pha­bet will re­port the re­sults of its main In­ter­net and re­lated busi­nesses such as search, ads, maps, YouTube, An­droid, Chrome and Google Play, and hard­ware prod­ucts such as Chrome­cast, Chrome­books and Nexus, as well as its vir­tual re­al­ity of­fer­ings.

"Other Bets" will de­tail Al­pha­bet's other busi­nesses in­clud­ing Ac­cess/Google Fiber, Cal­ico, Nest, Ver­ily (for­merly known as Google Life Sci­ences), GV (once known as Google Ven­tures), Google Cap­i­tal and X, bet­ter known as Google X. Al­pha­bet said there would be no changes to its con­sol­i­dated fi­nan­cial re­port­ing but some changes would be made to how it breaks out rev­enue.

In­vestors and an­a­lysts had praised the move to the Al­pha­bet struc­ture as a shift to­wards greater trans­parency and fis­cal dis­ci­pline when it was an­nounced in Au­gust.

It will pro­vide in­vestors their first de­tailed peek into the fi­nances of the parts of Google out­side its highly prof­itable search en­gine. In a blog post an­nounc­ing the changes, Al­pha­bet's chief ex­ec­u­tive, Larry Page, said the change al­lows the com­pany to take the "long-term view" of its hold­ings and in­vest "at the scale of the op­por­tu­ni­ties and re­sources we see." "Fun­da­men­tally we be­lieve this (struc­ture) al­lows us more man­age­ment scale, as we can run things in­de­pen­dently that aren't very re­lated." Since the 10 Au­gust an­nounce­ment, Al­pha­bet's stock price has climbed al­most 13%, clos­ing at $748.30 on Thurs­day. In ad­di­tion, the com­pany is close to dis­plac­ing Ap­ple Inc. as the most valu­able US tech com­pany. Reuters

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