You May Know Google, but What About Calico or Sidewalk?
On Monday Google cleaved itself into a new company called Alphabet. Made up of several companies that had previously constituted Google, Alphabet is already being likened to Berkshire Hathaway, Warren Buffett’s holding company that most people may not be familiar with despite knowing its subsidiary companies which include Geico, Dairy Queen and Fruit of the Loom.
There’s Google, of course, but Alphabet houses other companies people may not be familiar with, such as Sidewalk, which seeks to improve cities, or Calico, which wants to find the fountain of youth. That appears to be a major reason for the decision to create Alphabet. These companies may have stemmed from Google, but they’re sprouting into their own organizations and need room to grow outside of Google’s shadow. And it doesn’t hurt that separating their costs from Google’s may help Wall Street investors appraise Google’s business without its profit-shrinking former side businesses.